I think the key question you should ask your realtor regarding a short sale is exactly what you asked here, "what are the key issues that I should know about when doing a short sale?". Your agent should be able to answer this for you in a satisfactory way.
Personally, I would look at these issues:
1. What is a fair market price to offer on a particular short sale home?
Often times short sale homes are priced below market to attract multiple offers. This is certainly not a pricing strategy that I agree with because it creates false expectations for the buyer who thinks they will get the home if they offer full asking price. In other words, the asking price could be $150,000 but if the bank's appraisal deems that the home is worth $200,000, then you get into a negotiation and end up realizing that your maximum price/budget was below what the bank was willing to take (the bank is the one who ultimately decides what the final selling price will be). Therefore, you end up walking away from the deal. To get to this point you may have had to wait for months and in the meantime you let other good opportunities that were foreclosures and resales pass because you were stuck waiting for your short sale.
2. What is the average time that the bank that holds the mortgage for a particular property is taking to process a short sale? If you are on a timeline, you should know what to expect and then add additional time for unexpected delays.
3. Has the seller completed their hardship package with their bank? The seller needs to document a hardship situation (loss of employment, bankruptcy, etc.) with his lender in order to be able to get bank approval for a short sale.
I hope this helps. Please feel free to call me if you have any questions.
Like the 2 agents below already stated, be patient. The only questions you can ask once you are under contract with a short sale seller is to try to get weekly, biweekly or at least monthly updates, even if there isn't anything to update you on, so that you are at least knowing what is going on and not just sitting there wondering. I am actually a short sale expert and know that this process doesn't work for every buyer. You really have to be willing to wait it out. If it's the right home, then it will be worth it in the end. But if you have to move by a certain date, then a short sale isn't for you and I would suggest to continue looking for homes that are NOT a short sale. If you have any other questions, I'd be glad to assist you. Just let me know. Good Luck!
Jillian Bruening http://www.JillianSellsHomes.com
You ask the standard questions you would ask for a non short sale. You should be aware that you need patience when bidding on a short sale. Sometimes it takes three to six months linger or more You want to know how many offers are in. Good luck and I hopethis helps you.
KELLER WILLAMS PRFERRED
62 South Main Street
Yardley, Pa. 19067
Office phone: 215-493-0200 ext 1087
Direct phone: 267-395-0251
Neither you nor your Agent can say or do anything to speed up the process!!!
Believe this; nothing!
Visualize a desk, belonging to the overworked/underpaid assistant which is stacked THIS HIGH with folders, one for each Shortsale that they are responsible for processing:
And someone calls (actually you probably can't get through) and bugs that assistant; where do you think that folder goes after the hang-up? On the bottom!
The Banks are sitting on Foreclosures; they have no incentive to speed up their process. HUD is not pressuring them, and if they are, it is a BARK with no BITE!
You have two choices, and one of them is to be patient.