Know the wait can be long, anywhere from 30 days to 6 months.
You may want to place an offer sooner than later.
In life, you get what you work for with sometimes luck near you.
So if you get it - celebrate.
If not - it was just not meant to be:-)
Example- It took 6 months for a Countrywide/Bof A deal to close - I was the listing agent and spent six months of tireless work and phone calls to get this through before foreclosure took it.This Lender holds alot of the "toxic" loans and have a ton of files to work on- so the "squeaky" agent gets success if you know what I mean!
Good News is some are going through really fast! Let me know if I can help- I specialize in Chino Valley and have been here 18 years. It is a great time to buy in Chino Valley if you have cash or are well qualified.
PS- The Lenders do look at the Buyer's offers and Pre Qualifications carefully before sending an acceptance.Also they can counter a low ball offer- so offers needs to be in line with comps.
Look for homes, if you find a short sale place the offer, if it gets accepted...incredible.
Don`t stop looking, don`t stop placing offers, just be careful if a listing agent asks if you have other outstanding offers.
You will Probably get one of the deals done, and cancel the others.
I really don`t know the market in Chino Valley, however in Phoenix, it is taking at least 90 days to forever with 30% success.
Cash is king.. sales seem to go smoother with cash.. if you can't have cash have a great down-payment.. Work with a agent that has a track record of closing short sales.
This is an interesting market and the rules are changing fast. Call a buyer's agent that works the area and chat.
The Bergamini Group.
2. Work with buyers agent who represent you
3. No are tips matter of bank wanting to accept your sales offer
4. Once you submit a sales offer keep looking the bank may decline it.
5. Yes it can take months for bank close a short sale.
National Featured Realtor and Consultant, Texas Mortgage Loan Officer, Credit Repair Lecturer
Follow me on Twitter: http://twitter.com/Lynn911
Consider obtaining the following information about the subject property:
Have the sellers submitted the necessary paperwork for a "short sale?"
Have they filed a letter of hardship with the lender?
Has the bank confirmed recieving the paperwork?
Has the seller had a recent appraisal?
What is the basis for their "asking price?"
Has the bank appointed a "loss mitigator" to this property?
Has the bank done their own recent appraisal?
Has the bank indicated an acceptable price for the property?
Short sales are notoriously difficult and require excessive amounts of time and great patience. They are also often result of great disappointment. Any buyer considering venturing into this arean should do so understanding the odds may be against them.
The Eckler Team
The first step in buying a home is to define your real estate goals. State them as precisely as possible, for example: Purchase a 3 bedroom 2 bath home in this neighborhood for $1,600 per month, by January, 2010." Your goal should be measurable and attainable.
The second step is to select a Realtor. Select one that listens carefully to your real estate goals; someone that clearly knows how to help you achieve your goals.
Your Realtor will recommend that you be pre-qualified with a mortgage banker (lender). This is a critical step in the process. Your lender will guide your selection of a mortgage product based upon your real estate goals and your current financial position.
Once these three steps are completed, you are ready to look at homes. If you are pressed for time, short sales might not match your real estate goals.
In the past three years, short sale approval has taken longer than necessary. It's speeding up, though, and here are the reasons:
1. The banks weren't prepared for the large number of short sales that poured into their loss mitigation departments. They were severely understaffed from 2007 to 2009. Most lenders have worked to solve this problem.
2. Most listing agents did not understand the Short Sale process. In order for the seller's lender to accept less than the seller owes, the seller needs to prove a hardship position. It requires a large amount of documentation. Until recently, most listing agents did not know how to manage this type of project. Today, most Realtors are very well educated in the Short Sale process. Listing Agents know the seller's file must be complete before an offer will be considered.
Before you visit a house listed 'short sale', your Realtor should check to see how many mortgages the seller has; many sellers have two or three mortgages (including Home Equity LInes of Credit). If the house has more than one, it will take an especially long time, because all lenders must agree to take less than is owed.
Your Realtor should also consider the market value of a Short Sale listing. The Seller's lender, who must accept less than is owed, will order a BPO (Broker Price Opinion) after your offer is submitted. If the home is listed for $150,000, but it's really worth $200,000, the bank will not agree to sell the home for 25% less than market value. Make sure the Short Sale is priced correctly or the deal will stall, which may prevent you from achieving your real estate goals in a timely manner.
If your Realtor and the Listing Agent work together with the Seller's lender, the short sale can be a viable option.
The first step in buying any real estate is to determine what your buying circumstances are. If you are a cash buyer, set your budget or if you are financing, become pre-qualified. Once you know your budget, determine what you are looking for in terms of location, property profile and time-frame. If you are buying a primary residence and want to move quickly, a short sale may not be the best option. If you can wait a few months to purchase, a short sale may be a great option. Your offer both, in terms of prequalification and execution by your buyers agent must be squeaky clean. More than any other purchase, a short sale is very situationally dependent. The factors to consider are: Which lender is involved in the approval process? Is there a second [or even a third] note on the property? Is it priced at a market price that will improve a chance of approval? Is the property listed by a qualified short sale expert?
Making multiple offers may be a way to help you meet your goals.As mentioned before, a great buyer's agent is the key to helping you determine which property and which approach is best for you. That property may or may not be a short sale. Focus on what your goals are in purchasing real estate and explore all avenues to reach them.
May I wish the best to you and your family this Thanksgiving season.
The wait is the frustrating issue for buyers when submitting offers on Short Sales. It is so unlike a regular transaction or even a foreclosure. Actually, your offer is the lowest priority for the bank, when they finally get around to receiving your offer.
The real delays are the negotiations that take place with the seller and any other possible secured lenders. The bank and the seller have to reach an agreement of how much they will owe of the difference between your short offer and the amount the seller owes the bank on the mortgage. If your offer is within market, the seller's negotiator and the loss mitigation officer are going back and forth while you wait.
Sometimes it takes months for the bank to even assign a loss mitigation negotiator to the case after the offer comes in.
While the deal can be good on a short sale, the wait, wait, wait is part of the transaction. Waits can range from 2 to 6 months sometimes more.
If you would like to see a good webinar on how the entire short sale process works, see the link on my website at: http://www.arizonahomesland.com/forsellersorlandlords.html
Don't rule out a foreclosure property. This is a great time to buy. As you probably know, the $8,000 tax credit has been re-instated for first timers or those that have not owned in three years. There is now a $6,500 Tax credit for existing homeowners. Additionally if you do purchase a foreclosure property, free grant money (up to 22% of the purchase price) is available if you live in the home for periods of 5, 10, or 15 years. This makes inexpensive homes already, even more affordable. The free grant money is available through the state of Arizona. See the link for "Free Grant Money" at: http://www.arizonahomesland.com/forbuyersorrenters.php.
If I can answer any more questions or have one of our best agents show you some homes or land, feel free to give me a call. I would be pleased to help you.
Jeff Masich, RealtorÂ®
Arizona Homes and Land
HomeSmart Real Estate
But with most listings these days being short sales you may want to place an offer and let your agent do the work. Your agent almost always works for your best benefit so if you can give your best offer the very first time and be willing to go up a bit you may be able to get a good deal.
All the best!
Reason why I ask is this is not the easiest process to navigate yourself. They can be difficult to do and I highly recommend you finding a buyers agent who is experienced in dealing with these. Like mentioned below you dont want to come in too low as it may be a while to hear back from the bank and all that work could go down the tubes if you went in real low in a multiple bid situation.