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Trulia, Other/Just Looking in San Francisco, CA

What's the typical process when buying a short sale?

Asked by Trulia, San Francisco, CA Mon Mar 5, 2012

How long does it take? What are some pitfalls?

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There is no Typical ! Short sales are at the discretion of the lender that is agreeing to take less than what is owed. Some are prompt and the majority are slow and slower. If there are multiple loans on the property all lenders need to agree to a short payoff. When you place an offer on a short sale the response you get is from the owner and they usually agree to anything as there are no proceeds to them so they don't care what the price is. If the listing agent has not done a good job of fair market value the bank will reject or counter the offer. The time frame is often 30 days or more for a response and many short sales continue on for 6 to 9 months before they close or are sold in Foreclosure. This is an area you need a real proffesional agent to represent you in. The pitfalls are many and you can eliminate the majority if you ask the right questions. A full consultation would be the only way to cover all the possibilities.
Bill PfeifP
Pfeif Residential Group
559 433-1929
2 votes Thank Flag Link Mon Mar 5, 2012
Every short sale is different. Average time frame 60-90 days. Many of the lenders have improved their time lines. You need cooperation from all parties involved. Pit falls are most short sales are sold as-is and if there is a second lender involved. Most of the pit falls can be avoided by consulting with an experienced Real Estate agent and making an educated approach. If you need more information you are welcome to call me 559-285-5551. Ken Lucas (Dre#01820316)
2 votes Thank Flag Link Mon Mar 5, 2012
Average time is about 3 months to get an approval, but I've seen it take as little as two days, and as long as a year and a half. The listing agent is the one who does the processing, it's important that he is knowledgeable and diligent.

One advantage to a short sale over a foreclosure is that you still have the homeowner as a resource for information on the home, and he is obligated to give you disclosures about the home. On the flip side, most sellers either can't or will not do repairs, even if they are necessary for financing.

An experienced agent in your area should be able to guide you through the pitfalls, and make sure all of your questions are answered along the way.

Good luck!

Laura Corey
Guarantee Real Estate
License #01303203
2 votes Thank Flag Link Mon Mar 5, 2012
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