Has the bank approved the price? If so, this can shave 3-5 weeks of the process. If not, they will order an appraisal and broker price opinions to determine fair market value. Depending on the contract, you will need to do inspections within either a certain date following the effective date (the day the last party signed the contract) or it can be from short sale approval date which is the date the lender provides notice to the seller that the short sale is approved based on the terms outlined in the letter. This letter will usually include a deadline for closing, which I have seen extended if necessary and for a good reason such as needing more time for loan processing.
Make sure that your RealtorÂ® is doing their job by doing due diligence in the transaction. Our team would be happy to assist you in finding a great home at a great value.
Fred Strickroot, RealtorÂ®, MBA, CDPE
Florida Lic. Real Estate Brokerage
2154 Seven Springs Blvd, Suite 103
Trinity, FL 34655
Lienholders/lenders are being asked to accept less than what they are owed on the house. They are also responsible to investors who actually funded the loan. This could add yet another layer of expectations. In the end, they will have the final say on what the property will sell for.
Sellers come in all shapes and sizes as well. Some will want to put this sad chapter of their lives behind them as quickly as possible. Others will want to "work the system" as long as they possibly can. Living in a home for free, and as long as possible can be a powerful consideration.
Questions to ask might be: 1. Have there been previous offers on the house? If so, how did the lienholder/lender respond? 2. How many liens are on the property? The more liens, the more complicated. 3. What is the seller hoping to accomplish? 4. Will there be additional Negotiator/Mitigator fees? If so, how will they be paid? 5. How did the listing agent arrive at the price. It is not uncommon to offer a home at an artificially low price to attract a buyer and cause a lender to counter
In just the last 12 months I have seen a brand new short sale, with multiple liens close within 45 days of contract offer. I have also seen short sales have all the indications of a reasonably quick process linger on for 120+ days, only to have the buyers walk away in disgust.
There is an opportunity to find a bargain with a short sale, but it is not for the faint of heart. The most important thing you can do is find a good Realtor, who knows how to ask all the important questions. It should be someone you can be confident in to represent your interests. Then you need to understand that no matter how good he/she might be, there are many issues out of his/her control.
You can get a good buy if you are willing to wait it out.