Home Buying in Milwaukee>Question Details

b94lover1, Home Buyer in Milwaukee, WI

My broker told me not to buy short sale properties because it takes too long to process and I shoudn't wasted my time. Is it true?

Asked by b94lover1, Milwaukee, WI Mon Jul 30, 2012

Help the community by answering this question:

Answers

6
Short sales can be very difficult to close and they can take along time. It depends on how much work the listing broker has done.
1 vote Thank Flag Link Mon Jul 30, 2012
Short sales can be a lot longer process, but it doesn't always mean it's a waste of your time. I have seen some really good deals come off of short sales, but the process can be very exhausting and frustrating for buyers. Make sure you are patient and have your broker get some basic information before ever writing on a short sale. I would have them find out how many mortgages are on the property and with whom. If there is only one mortgage, or two mortgages with the same company you probably have a good shot of getting a deal done. If, however there are two mortgages with different companies it is going to be more difficult. You can also check to see if there are any construction liens or any other types of liens on the property as well. The more people you have to pay off the harder it's going to be to negotiate a deal. I would also find out if the listing broker on the short sale has established a relationship with the bank yet, or started any negotiations. Happy house hunting!
0 votes Thank Flag Link Mon Jul 30, 2012
All the responses below are great advice... one other thing to remember is that not all sellers get approved for a short sale, and you can end up waiting months for a response from the bank only to find out that they are not going to approve the seller's situation for a short sale. If you're willing to forego other properties you may like at a great price while waiting for a response from a seller's lender, then yes, it can be worth the wait. Depending on the property and the amount of improvements needed, foreclosures are often better 'deals" than a short sale and a much quicker process.
0 votes Thank Flag Link Mon Jul 30, 2012
It depends on your patience level. If you can write an offer and be prepared to wait for 60 -90 days to find out if it is accepted, you could get a really good deal. You just have to have a stomach of steel for it. There are great deals to be had with short sales, but it is a grueling process as they can continue to accept offers even after yours.
0 votes Thank Flag Link Mon Jul 30, 2012
Yes, typically they can and do take longer than a conventional sale. There are many things involved in whether or not you should pursue as Troy already outlined. Another thing you need to do is make sure that the agent you are working with is experienced in short sales so that they know what questions to ask the listing agent of the home that you are interested in and even then there are no guaranties You need to have faith and trust in your agent and a lot of patience and no restrictions as to when you need to close.

A short sale can be of great value to you if you are willing and able to play the game.
0 votes Thank Flag Link Mon Jul 30, 2012
B...short sales can be tricky to navigate. They do typically take longer than regular transactions and even straight foreclosures. Some questions to ask yourself:

1) How good of a deal is this short sale? Did your broker comp the area and show you what comparable homes are selling for?

2) Are you willing (and able) to spend the additional time working with both the bank and the seller?

3) How much do you really like this particular home?

Only you can decide whether or not short sales are for you.

Troy Miller, ABR, RNG
TOTAL Realty LLC
414-333-3723
troymiller@totalrealty.com
http://www.totalrealty.com
0 votes Thank Flag Link Mon Jul 30, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer