Home Buying in Harrisburg>Question Details

Samuel Lin, Home Buyer in 28215

How to buy a short-sell house?

Asked by Samuel Lin, 28215 Thu Apr 15, 2010

I am looking at a house in Harrisburg area, which is mentioned as a short-sell. What is the difference between a normal MLS house and a short-sell house in term of thebuying process? Do I need to find a special buyer's agent to buy it, or just work with the listing agent? Thanks

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If I have a contract on my house, and it is to close before Sept 21st, and I have found a short sale house that I am interested in, can I make an offer on a short-sale, seeing as how it seems to be a drawn out process? Does anyone know?
0 votes Thank Flag Link Mon Aug 20, 2012
Buying a Short Sale

Buying a short sale is not like buying a property in a traditional way. A short sale may have some risk but it also can be very rewarding. When you are searching for a short sale you will want to make sure you are prepared. Here are some things you will need to consider.

First of all, you need to make sure that you have enough time. It takes anywhere from 30 days to 6 months or even more to get an answer on a short sale. It really depends on many factors. The bank may come back with a counteroffer or reject your offer completely. In some instances you may not even hear back from the bank at all.

Short sales take a long time because the bank has to review it and they are back logged with many short sales and don't have enough coverage to complete them in a timely manner. The bank typically is willing to work with the seller and buyer on short sales to help avoid foreclosure.

One of the benefits of buying a short sale is that the bank is typically willing to accept less money for the property because of the time and risk involved. So you generally are getting the home at below market value.

If you have the time to wait, a short sale is a good way to go. One thing to be sure to ask when purchasing a short sale is, "who is handling it?" Is the Realtor an experienced short sale expert? Or is the listing agent using a Short Sale company that strictly focuses on short sales? By having someone with knowledge and expertise in short sales, it will make the process go much smoother and faster.

Tammy Hayes, Realtor, Sandals Realty, Punta Gorda, FL tammyhayesre@gmail.com
0 votes Thank Flag Link Tue Oct 26, 2010
Hi Samuel, I am a short sale broker. When putting in an offer on a short sale, be prepared to wait at least 45 days to get a reliable response from the loss mitigator at the bank. Unless the listing broker has made an agreement in advance with the lien holder in regards to a acceptable purchase price, it will take a lot longer. That said buying a short sale is a great way to a lot of house for less money.

Kindest Regards,
Jeff Monfils REALTOR®
Director North Carolina Operations
BIC / CFA / CSSA http://www.BastilleRealEstate.com
Bastille Real Estate Foreclosure Avoidance Consultants
3611 Mt Holly-Huntersville RD Ste 204-310 Charlotte NC 28216
704.975.7616 | 888.807.4848 ext. 505
Philippians 2:1-4
0 votes Thank Flag Link Fri Oct 22, 2010
Whether the property is a short sale or a property in which clear title is transferred when the mortgage liens are satisfied in full, the legal obligations, duties, and consequences remain the same. Real estate agents, based on the training required to acquire a real estate license, are grossly unqualified to discuss or interpret real estate law. The article linked in Donna Johnston's post below proves the point! Applicants for real estate licences in most states are required to pass as little as 40 hours of classroom training to sit for the real estate salesperson license (Alaska). Most states require 60 hours of classroom training before sitting for the real estate salesperson exam. A licensed attorney, in contrast, has earned a bachelor's degree from a accredited college or university (with a few exceptions) and a law degree from an ABA approved law school, with at least 90 semester credits, and at least six semesters of full time law study. (Interestingly, the long and detailed forms that real estate agents will request any individual participating in a real estate transaction to sign are drafted by- surprise!- an attorney highly qualified in real estate contract law. Examine a standard real estate contract form supplied by the real estate industry, and the rights entitled to the real estate agent/broker are carefully crafted to ensure that the legal rights of the real estate salesperson and brokerage are protected.) Knowing this, a buyer or seller should hire an attorney that represents the buyer or seller to draft the sales contract as a smart move, as the only language that references the payment of a commission is required in such a contract, rather than the paragraph after paragraph of language protecting the real estate agent.

Short sales are complicated and require a trained legal professional to negotiate.
0 votes Thank Flag Link Thu Apr 15, 2010
Samuel,
Here is a blog post that I had commented on just before answering you. It is SOO important you find a good agent.. I can't stress that enough!!

~Donna
0 votes Thank Flag Link Thu Apr 15, 2010
Your buying process could depending on the status of the short sale.

The houses require short sale because the seller has less equity than the current market value and they are not able to sell the house unless their bank is willing to take a discount.

The entire short sale process could be long. It involves the seller showing the lender how they can not afford to keep the home and can not come out of pocket for closing. It involves a cash or financed qualified buyer to make an offer and follow through. It also involves the lender to verify the value and condition of the property so that they can accept to a number that they feel comfortable.

If you are at the beginning of the process, then you would follow through for the opportunity to buy a home at a discounted price.

But if you are looking at a short sale home that most of the work has been done, (the short sale price has been accepted by bank), then you would see if that price is acceptable to you and you can move forward with the rest of the closing process.

Regardless of the process, you should find an agent.
Web Reference: http://www.imminest.com
0 votes Thank Flag Link Thu Apr 15, 2010
Hi Samuel,
Yes, you definitely need and experienced and trained agent. Look for one that has a CDPE or a SFR certification. All of the agents on my team are trained for this and make it work. If you don't have a good agent to advise you your deal may not go through. Just hope the listing agent is experienced as well. The listing agent represents the seller and would love to double end the commission if he/she practices dual agency. Short Sales are nothing but short. You are also under a time constraint because you have to get the offer on the home excepted prior to the home going into foreclosure. You as the buyer, the home owner, and the bank or banks all have to agree on the terms and conditions to make it work. When you submit this offer on a short sale if you do it right it requires a LOT of work. If you submit your offer just like any officer it will go to the bank and end up in a pile of 100's of files and you will not get a response. Timing is starting to improve with banks recently with some changes to the way the banks are handling short sales but it still is a tedious situation. I will be happy to help you out. In fact my associate Rhonda Gibbons, Rhonda@TalkCharlotte.com 704-651-6551 has had HUGE success not only in Short Sales and Foreclosures but Auctions as well.

~Donna Johnston
http://www.TalkCharlotte.com
704-517-3925
0 votes Thank Flag Link Thu Apr 15, 2010
You need to contact a Realtor represent you. If you are wanting to have an executed contract by 4.30 short sales or foreclosures are not better options due to volume of files the asset mgr. has.

Lynn911
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Thu Apr 15, 2010
Find the most qualified real estate attorney in the area, spend an hour of the attorney's time.
It will be $300 well spent.
0 votes Thank Flag Link Thu Apr 15, 2010
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