Have fun, be ready for a rocky ride.
There are several different approaches to buying in a market like this, but the best approach depends on whether you're an investor or an owner occupant.
If you aren't buying with cash, consider this - mortgage rates have gone up over 1% since June - they are still excellent by historic standards, but they will continue to rise.
The risk - by the time you make it through a short sale, rates could have gone up to the point that you no longer qualify - or the property no longer looks that good anymore.
As everyone else has indicated, every Short Sale will take a different amount of time. How prepared and thorough the Seller is with their Short Sale package will play a major part.
Purchasing a home via short sale is not at all an easy process. A lot will depend on how experienced the Listing Agent is and how prepared the seller is. You can expect for most short sales to take at least 3-6 months from when the Seller first contacts their mortgage lender(s). If they have a 1st and 2nd mortgage, they must get approval from both companies. This of course, will lengthen the process.
Short Sales have so many ways in which they can go wrong. Many Short Sales simply never close after several weeks or months of work. This is a fact that every Buyer needs to completely understand. If you are purchasing a property and must close by a certain time, then a short sale is probably not your best option.
A lot of the reasons for the fallout depend on the Seller. To qualify for a short sale, the Seller must submit all of their financial documentation AND prove that that currently have a financial hardship. Many sellers donâ€™t submit the proper paperwork resulting in delays. Some Sellers cannot demonstrate the required financial hardship that is required for a short sale approval. If a Seller files Bankruptcy during the process, that will cause a delay. There could be unpaid property taxes of HOA dues to deal with. There are countless other things that can and often will go wrong. Some can be overcome, some cannot. No Listing Agent, no matter how good they are, can control every action of a seller.
It is critical to keep in mind that the Sellerâ€™s lender(s) is taking a loss on every short sale. They must to their due diligence to ensure that the short sale is justified and that it minimizes risk to the lender. There is also a lot of fraud with short sales so that must be invested as well. The buyer are seller re not able to have prior relationship with each other.
A short sale is VERY time consuming for all parties involved. A Buyerâ€™s Agent has absolutely no control in the short sale process. They are solely dependent on the Listing Agent and the Seller.
If you are looking to purchase a property, working with a knowledgeable and seasoned loan officer is critical in today's market. Getting Pre-Qualified is the only way for you to find out your mortgage options. To get Pre-Qualified for your purchase, you can submit your request online at http://www.rodneymason.com to get started.
Rodney Mason, NMLS #151088
Sr Loan Officer
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of mortgage lending experience.
Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203(k) Renovation (Streamline & Consultant) | HomePathÂ® | HomePathÂ® Renovation | HomeStyleÂ® Renovation | VA | USDA | GA Dream | Jumbo Financing.
Keller Williams Cityside
Solid Source Realty Inc