then you have to await the bank(s) response.
This can take anywhere from 3 weeks to 5 months on average.
Then you can expect yourself to go through all sorts of emotion.
If you cannot set it aside this may be tough.
The bank then may get back to the listing agent with some sort of an answer with some crackpot demands like they want to close in 10 days.
The bank will expect you to have done all of your inspections, and as the buyer you get to pay for those and your appraisal. all without any guarantee the bank will even respond that they will or will not do anything. Don't worry though on average 12.5% go through or 1 in 8. The other 7 out of 8 get lost in the shuffle. That means while your deposit is at stake, you will shill out on average 400 for a home inspection and another 400 for an appraisal. That is if you decide not to do additional inspections.
Then you get to worry if the sellers will actually leave their home that most likely they haven't made a payment in a year or so.
There is nothing like buying a home with squatters in it.
Then you get to worry about whether the sellers take things they shouldn't out of the home when they do leave.
I am sure if you have any questions your agent will walk you through it.
I'm sure your agent is a great buyers agent he will write a contract to make it so you wont have most of the problems I mentioned above.
I wish you the very best
So Cal Homes Realty
CA DRE License 01312992
Graduate REALTORÂ® Institute,
Real Estate Masters,
Certified Distressed Property Expert,
You may want to view this post:
Based on experience, I DO NOT advise my clients to invest their time in Short Sales. The "benefits" are highly overrated and the process is seriously frustrating.
I would concentrate on non-distressed and REO properties.
The secon usually will not give an approval without the first giving theirs...this takes time and once the first does give an approval, the second has to get all updated docs (usually by the time the first approves the sale the docs are stale).
You shoul check and make sure tht the Seller has not received a NOD (Notice of Default) This can also present its own set of problems.
Again, as everyone has stated, you need patience an a good agent on both sides of the deal...someone who has actual experience with SS an not just an ocassional deal.
Once you have been accepted by the Seller your offer may be countered by the bank to get a higher price. That is their job...to get as much as they can...Your agent's and your job is to try to get it at the price you want to pay. Do not be afraid to negotiate with the bank as well...especially if you are the only game in town. (The banks do have their own formulas as to what they will and won't take ... but you can still try to negotiate with them. I just got a great house for one of my clients for almost $100K under what other homes are selling for in that area.
The main things are make sure you have open lines of communication with your agent. That you have a good and experienced agent. That the other agent (listing side) is also experienced. And you know you are in for a very long...what seems to feel like never ending...wait. Good luck...Rose Nied, Alain Pinel Realtors, 510 530 7011
You must have patience. You can email me when you do offer on a home with your Realtor, let me know who the bank(s) is/are & I can let you know how long you should expect to receive an approval letter so you can proceed to close. Banks are different with how long ea. one takes to get approved.
Make SURE that you know IF YOU are THE primary buyer, meaning if multiple offers are received by the listing agent you NEED to know that ONLY yours is the one that's chosen to submit to the bank.
If the listing agent states "we submit all offers and then let the bank choose the best one", run away, this agent is not working it correctly. And, when you know you ARE the primary offer being submitted to the bank, make sure the listing agent will put the home into either a Pending or a Back Up Offer status in the MLS, if they don't agree to do this up front,, run away.
Your Realtor will help you navigate these waters. Or email me if you have any more questions.
You should expect to need patience. I recommend you find the ph# for short sales dept. at you lender(s). Give your mortgage statement to your agent along with getting the agent approved at your bank to discuss your particular situation with them.