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 firstname.lastname@example.org
Jeff Monfils REALTORÂ®
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
Short sales are complicated and require a trained legal professional to negotiate.
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!!
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.
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.