Home Buying in 02861>Question Details

Tamayra Pear…, Home Buyer in Rumford, RI

What to do about a short sale?

Asked by Tamayra Pearce, Rumford, RI Thu Aug 9, 2012

I've heard that buying a short sale could take a long time depending on the banks approval. What do I need to know before looking into a short sale and is there anything that a buyer can do to speed up the process??

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6
Joseph Del Sesto’s answer
Tamayra, Debbie makes some great points. If you are not prepared to be waiting to get into your new home for 7 months or more, then don't get into a short sale contract. I do a lot of short sales as it is a necessary evil in the market right now, but I have several that are going on 4 or 5 months in process. I estimate that 50% of short sales fall apart because the buyer gets so aggravated with waiting for the approval, even though at the beginning of the process I tell them it could take several months and they tell me "Oh that's no problem, we're not in a hurry". AND you are not guaranted to get the approval at the price you have offered ! I've had clients in contract for 3+ months and the bank comes back and counter offers, and the buyer is not willing to go to the higher price. In the meantime, you could miss out on the house of your dreams which is still at a great price while waiting in limbo on a short sale. I would suggest you sit down with a real estate professional and go over your "WANTS and NEEDS" before you decide to make an offer on a short sale. Feel free to visit my web site for more information or to find any type of sale, depending on your situation. Hope this information was helpful. Joe. http://www.joedelsesto.com.
1 vote Thank Flag Link Thu Aug 9, 2012
Nicely stated Joe!

And, I think the point that needs to be emphasized is.......short sales aren't always the bargains many consumers think or assume they are.
Very often the buyer winds up paying fair market value ....after a long wait.........

I had a buyer wait 5 months only to have the bank come back with a counter offer OVER the initial list price......it made no sense, but then, a lot of things the banks do dont make sense..
The buyer walked away, and a year later, the house, still sitting empty, was put back on the market , still as a short sale - at a much lower list price than the bank turned down the year before!

That's why the consumer needs to be educated as to what is involved in attempting to buy a short sale.
0 votes Thank Flag Link Thu Aug 9, 2012
No sure thing with a short sale, but if you found a home you love, go for it. I have my Buyer clients treat it as a standard purchase. got would enter into a contract to purchase with specific closing dates. If the bank has not performed by the closing date you can either walk from the sale or do an extensio, month to month to not tie your self into a long drawn out waiting period. Of course it's always best to have a qualified realtor assist you with making a fair offer and helping you through the process. Feel free to contact me, I'd be happy to help you through the process.
0 votes Thank Flag Link Thu Aug 9, 2012
Hi Tanayra, The first thing you need to know is that you should a buyer agent representing you. Especially in a short sale purchase-preferably one that specializes in short sales. They will know what questions to ask such as how many lenders are involved, who the lender (s) are (some bank respond quicker than others), had there been any previous offers, has the owners hardship packet been sent to lender and other very important questions to help determine approx. how long it may take to get approval. Of course, approvals are never guaranteed-so also put a time limit on the offer-always use a short sale addendum to contract. I hope that helps a bit-much patience is needed in a short sale purchase, but if all comes together-you can get a great deal. If you have any further questions or need my assistance feel to to call or email me. Good luck!

Lori Rossi
Coldwell Banker
Lori.Rossi@Nemoves.com
401-480-1973
0 votes Thank Flag Link Thu Aug 9, 2012
Based on your question;
you should be trying to buy a Shortsale!
Forget it!!

You've already admitted you are impatient,
Imagine how you'll feel in four month?
0 votes Thank Flag Link Thu Aug 9, 2012
Actually I'm not impatient. I was simply asking because I was watching a program on HGTV, and the buyer was doing a short sale. But thanks for answering.
Flag Thu Aug 9, 2012
what do you need to know?
you need to know that you can't be sure if a closing will ever take place...............

why do you want to buy a short sale?

If you are interested in buying a home and knowing you can plan your life around a specific move in date - imo, stay clear of short sales.

Also, many buyers mistakenly think a short sale is automatically a great deal........that might not be the case, as the banks are looking for market value, too. You, as the buyer, cannot do anything to "speed up" the process, except be patient......some will tell you that you need to find an agent who is a "short sale" expert, and that will make all the difference.........I still contend that if you are a buyer who wants to have a "controlled" purchase that mopves along - don't buy a short sale ......
0 votes Thank Flag Link Thu Aug 9, 2012
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