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Coldwell Banker M.m. Parrish Realtors' Blog

By Coldwell Banker M.M. Parrish | Broker in Gainesville, FL

Short version of The Short Sale Process : The Buyer's Perspective

Many Buyers in today's market pursue short sales hoping to get a good deal. They often ask "What is a short sale? Can I get a better deal? What should I expect?"

When you see a home listed for a price that is well below market in a given neighborhood, it may be because of a short sale. A short sale is when the seller's lender is accepting a discounted payoff to release an existing mortgage. Just because that property is listed as a short sale does not mean the lender will accept an offer, even if the seller accepts it. Lenders are more apt to approve a short sale when the home is worth the short-sale price, which means market value. For a seller to get an offer accepted on their short sale property in a timely manner, the asking price needs to be close to market value. Otherwise, you may encounter a delay or other difficulties.

Let me explain the steps a buyer will take when considering the purchase of a short sale. Here is a simplified example:

  • Discuss your housing needs with your agent. Do you have the time to wait on the short sale process? Very few can close in 30 days or less. Most short sales take up to 4 or 5 months to close. You will need to be flexible and patient.
  • Have your agent determine, through a Comparable Market Analysis (CMA), the current value of the home. Have them submit the CMA along with your offer.
  • In preparing the offer, make sure to have your agent include your right to cancel. Short sales are sold 'as is.' However, you will have the right to inspect the property. With the right contract language, you can make sure the property has no defects that would be costly to repair before you are committed to moving forward.
  • If paying cash, you will need to provide your proof funds to close. This will need to be submitted with the contract and a copy of your binder deposit. If you will be getting a mortgage, you will need a letter from your lender showing they have preapproved you for the purchase. You should also provide the lender with everything they need. This way, once the lender gives their approval you will be ready to move forward with the loan process. Short sale lenders normally want to close within 30 days of providing their approval letter.
  • Hire a good real estate attorney experienced in short sales to represent you. They will negotiate on your behalf and make sure title is clear and the property is free and clear of all encumbrances.
  • Once the seller has accepted your offer, it will be sent to the seller's lender(s) for approval. You do not have an accepted contract until the lender accepts and sends you their approval letter, which will include the terms of their acceptance.
  • Remember ... Bank negotiators will not process a file if the sellers' short sale package is incomplete. That file will go to the bottom of the pile if it's missing required paperwork. Your agent or attorney should check with the list agent or the seller's representative negotiating the short sale to find out if everything has been provided so there are no delays.

Remember the key to a short sale is ... you need to be patient if you truly want the home.

We are dedicated to providing you with expert guidance. Call or email us to schedule a free, confidential consultation to discuss the options available to you.

Look for our next blog where we will discuss the benefits of a short sale for all parties involved.

WHY CAMERON & CAMERON ... We have made a personal commitment to serve the real estate needs of our community - one family and one home at a time! We pride ourselves on providing superior customer service and creating satisfied customers. With our 66 years of combined real estate, construction and mortgage industry experience, we are dedicated to providing you with expert guidance.

Whether you're looking to buy or sell, we can get your home sold, or find you the home you've been dreaming of. Either way, our goal is to make your experience comfortable, fast, and efficient. Cameron's...Make it Happen!

Bonnie & Ralph Cameron, ABR, GRI, CRS, CRB

Senior Vice President, REALTOR

Coldwell Banker, M.M. Parrish

5110 SW 91st Drive, #A

Gainesville, Fl.  32608

(Cell) 352-359-1070

(Fax)  352-264-3089

www.cameronandcameron.com

Call Ralph & Bonnie today to discuss buying or selling a Gainesville Short Sale.

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