One other hurdle is if the property wasn't the seller's primary residence they could end up with a substantial income tax liability if they are forgiven the loss on the sale. On a primary residence there are certain exemptions. If the seller discovers they could have a significant amount of income tax owed they must just get a modification and keep the property as a rental until the market recovers.
It's not your worry or responsibility to inform the Seller of his potential tax liability and I have seen many Realtors and Sellers who clearly have made foolish recommendations with respect to short sales.
Hopefully you will have smooth sailing.
All the best,
Also don't FALL in LOVE... unless the price and seller have already been previously approved.
You see, until/if the Seller AND the Price have been approved you may not end up getting the house at the price you think.
So, bottom line is you need to continue to search for a property that is truly available up until the day you receive the short sale approval letter in your hands.
Also consider getting an FHA 203k Streamline fixer upper mortgage so you can buy a bank owned fixer upper an include new paint, carpets, even granite counters and/or hardwood flooring. It's difficult to see past the UGLY bank owned properties but at least you will get a better bargain than a short sale an also have a definite closing date.
You may have to wait 6 months or longer for the short sale to close if the owners want to drag out the process to live rent free for as long as possible or if they're renting it out and collecting "free money". If there is a tenant in the property they may also get a destructive pet that may damage the cabinets and flooring. Also appliances, light fixtures and window treatments may be missing by the time you close. And plan on the possibility that the house may be left without utilities during the summer (if you aren't closed by then...a real possibility) and accumulate mold!
So, sorry to be a pessimist but you have to be prepared for the pitfalls with buying a short sale.
All the best,
Unfortunately there are some Realtors who may attempt to extract extra money from a buyer on a short sale.
Also there may be a "negotiator" fee but I believe that fee can only be paid to an attorney or licensed mortgage broker.
It's sleazy in my opinion for a listing agent to engage in this type of practice but it's probably why the house hasn't already been sold to another buyer and if you want it bad enough then you'll probably have to pay it.
All the best,
Another thing I forgot to mention in my previous post. Talk to your Realtor and let them know you want to negotiate the prices down to a lower amount.
There are often cases where the cost of a professional (usually an attorney's office), will not be paid by the seller's lender. If the seller doesn't have any money the costs will be passed on to the buyer.
The question comes down to: Is the property worth the price with the extra $2,000 addition?
These fees are usually paid when the property closes.
If they are asking you, the buyer, to pay any money upfront I would run in the opposite direction.
I hope everything turns out in your favor.