Home Buying in Woodburn>Question Details

Pc, Home Buyer in Woodburn, OR

We are looking at buying a property that is a short sale. How difficult are short sales in todays market?

Asked by Pc, Woodburn, OR Wed Jan 20, 2010

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Why do you want a Short Sale? I do many short sales and I have 90% plus rate of closing those transactions, the true is that not all short sales are a great deal, the lenders do an appraisal and 1 or more BPO (broker price opinion) and they will try to sell at current market value, this process can take from few weeks to several month and in some cases over a year without a guarantee that your offer will get approved, Interest rates and prices are going up and if you are committed to a short sale transaction and not get it approve you can end up paying a lot more later when you get into a new transaction with updated interest rates and new prices, please unless you find a dream home stay away from them, again, it can be an option for some buyers but there can be consequences for a long time (usually 30 years), want to know more about short sales please let me know I can tell you all about it.
0 votes Thank Flag Link Sat Dec 28, 2013
That depends on a few factors:
1) How many loans does this property have?
2) Who is the investor?
3) What is the current market value for this property?
4) What is your offer price?
5) What is your financial qualification and comparing to other buyers in the area?
6) How you write the offer contract
I suggest you find a certified short sale agent in your area so he/she can help you.
0 votes Thank Flag Link Thu Jan 21, 2010
Dear Pc,
I echo the answers you have heard, lots of patience is required. If you have no need to close a sale quickly, you may get a very good deal on a short sale. A key question: Has the lender completed an appraisal on this property yet? If so, your chance of response is greatly improved. Ask your agent if he/she has experience in short sales. I like to take a set of photographs of the home when the buyers decide to make their offer. This documents the fixtures and condition that existed when the buyer placed the offer.
Best of luck to you!
0 votes Thank Flag Link Thu Jan 21, 2010
Dear Pc,

Short sales require patience from all parties. The benefit of a short sale is more often than not, thw owner still resides in the house unlike a foreclose. In a northern state, de-winterization, broken pipes, etc. may not be a factor. With a short sale, you could get a good deal. Questions that should be asked of the listing agent:
1. How many mortgages are on the house?
2. Who holds the loans?
3. Who is negotiating the short sale?
4. How far along is the process?
If the buyer doesn't have a definate time line, then short sales could be a good thing.
0 votes Thank Flag Link Thu Jan 21, 2010
Hi Pc, you've got good input on the uncertainty and complexity of short sales. The timeline can be long and as a result it will probably not be realistic to hope to qualify for the extended/expanded tax credit if that is a goal of yours. With what you have learned here and the assistance of an experienced agent, you can move forward with "eyes wide open", which is always a good thing. I advice my buyers to continue to look at alternaitves. Of six buyers interested in short sales, three successfully closed, or soon will, and the other three found alternatives they are very happy with and closed before we heard back from the bank.

Good luck!
Jeanne Feenick
Unwavering Commitment to Service
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Thu Jan 21, 2010
pc,

Your question is a common one.....There are many buyers considering this corner of the real estate market with little background information on the topic of short sales.

Consider viewing our Trulia Blog for important short sale information.

Good luck

http://www.trulia.com/blog/bill_eckler-florida_gri/2010/01/how_to_i…
0 votes Thank Flag Link Thu Jan 21, 2010
What you need to know with a short sale is that you are dealing with the seller first. Once the seller has an agreement (not just an offer it needs to be a signed agreement between buyer and seller) they then take that contract to the bank and ask for the short sale approval. This is where experience and time come into play. It will depend on the bank and how many other shortsale transactions they have going. This transaction will get assigned to a processor as soon as one is available and may be one of several that processor is working on. It could be one month or three months before you get an answer back. You could get countered or denied. If you offer is accepted then you need to be ready to go because the bank could say we need to close on this date and if you are not ready then it could be longer. If you go this route be prepared and patient. Don't get frustrated if you don't get quick answers. Good Luck
0 votes Thank Flag Link Wed Jan 20, 2010
To put it bluntly, short sales are neither "short" or easy. However, if you are not in a major hurry to get the deal done in a timely manner (especially if you aren't trying to get the tax credits for this year), then a short sale IF it closes can be a very good deal for you. I agree with Craig that REO's (bank owned properties) can be equally as good a deal without the frustration. The bank has already set the price and you generally have clear title on the property. However, because the bank really knows nothing about the property, there are no disclosures. With a short sale, the owner is still involved and will have to have disclosures. Of course, you would always want to have a full house inspection no matter which way you go. If you enter into a short sale, it is the listing agent that can make or break the deal...and of course the bank. Make sure that is someone who is familiar with short sales and that they have already been in contact with the bank or banks if there are 2 mortgages. There will be a lot more short sales and bank owned properties coming on the market this year so you have choices. Good luck to you. I have a more detailed article on my blog at http://www.susanhowardsells.com
0 votes Thank Flag Link Wed Jan 20, 2010
Well PC You asked the right guy. They are very hard. Having said that if you have a short sales expert in the way of an agent and a qualified negotiator you will have some luck. Many buyers I would say are chasing a deal that will never ever happen. That is usually because the seller and agents do not have a realistic expectation of what the bank will accept. Are there deal? Oh my gosh yes. But ever deal you hear about traveled a long road to closing.

That and the answer to your question hinges on the lenders involved.. how many lenders...and how far backwards the seller is.

If you want to call me I will send you our short sales report and we can go from there.

Thanks for the great question PC and I hope you will take the time to speak with our team. We are closing short sales all the time.

Regards;

Dirk Knudsen
Team Knudsen
Re/Max Metro Gold
503-799-8383
0 votes Thank Flag Link Wed Jan 20, 2010
Some short sales are more difficult than others. It depends on how good a job each property's listing broker has done in preparing his/her listing for the short sale, and on what lender the seller has. Short sale properties can be time-consuming and frustrating to work with, but they can pay off in a big savings over current market prices. However, you can often also realize similar savings on REO (foreclosed) properties, but without all the wasted time, money and headache. Most active brokers have experience dealing with both short sales & foreclosures, so find someone you like that is knowledgeable & experienced.

Best of Luck!
Web Reference: http://www.bybryson.com
0 votes Thank Flag Link Wed Jan 20, 2010
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