Buying a house on short sale is good.
The process can be testing.
It can take 45 days to 14 months and the bank might still decide to foreclose.
Right now there r very few bank owned properties or regular sales in the market(in DC metro area).
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Buying a short sale is not like buying a property in a traditional way. A short sale may have some risk but it also can be very rewarding. When you are searching for a short sale you will want to make sure you are prepared. Here are some things you will need to consider.
First of all, you need to make sure that you have enough time. It takes anywhere from 30 days to 6 months or even more to get an answer on a short sale. It really depends on many factors. The bank may come back with a counteroffer or reject your offer completely. In some instances you may not even hear back from the bank at all.
Short sales take a long time because the bank has to review it and they are back logged with many short sales and don't have enough coverage to complete them in a timely manner. The bank typically is willing to work with the seller and buyer on short sales to help avoid foreclosure.
One of the benefits of buying a short sale is that the bank is typically willing to accept less money for the property because of the time and risk involved. So you generally are getting the home at below market value.
If you have the time to wait, a short sale is a good way to go. One thing to be sure to ask when purchasing a short sale is, "who is handling it?" Is the Realtor an experienced short sale expert? Or is the listing agent using a Short Sale company that strictly focuses on short sales? By having someone with knowledge and expertise in short sales, it will make the process go much smoother and faster.
Tammy Hayes, Realtor, Sandals Realty, Punta Gorda, FL email@example.com
Let me re-post it :-)
Short sales are wonderful, but do not expect to purchase at a bargain price.
Treat a short sale as you would a regular sale with understanding that there is that additional contingency on the seller's side called the lender approval. This is why offering a full market price is a wise decision if you like the property and would like to own the home.
If you were the lender, would you want to sell at a bargain price while taking the loss?
If you were purchasing from the seller in a traditional transaction, wouldn't the seller expect you to pay the full market price?
Most short sales are in a better condition than foreclosures.
Short sales come with a CLEAN, MARKETABLE TITLE and GENERAL WARRANTY DEED, while foreclosures offer only SPECIAL WARRANTY DEED - this is an added bonus when purchasing a short sale.
Every short sale is different. It is important that the listing agent understands enough about the seller's circumstances to know if the seller will be approved for the short sale by the lender AND the listing agent has enough experience and dedication to keep the transaction on the right track.
It is important that the purchaser works with a knowledgeable buyer agent who knows to ask the listing agent the right questions and is able to offer the best advice to the buyer - every short sale is different.
KELLER WILLIAMS REALTY
Short sales are great, but do NOT expect to purchase at a bargain price - especially if two lenders are involved.
Treat a short sale as you would a regular sale with understanding that there is that additional contingency on the seller's side called lender approval - this is why offering a market price for the property is a wise decision if you like the home.
If you were the lender, would you agree to sell the property at a bargain price while taking a loss?
If you were purchasing directly from the seller, wouldn't the seller expect you to pay a full market price?
Purchaser receives a CLEAN, MARKERTABLE TITLE and GENERAL WARRANTY DEED when purchasing a short sale - only SPECIAL WARRANTY DEED with foreclosed property. This is an added bonus when purchasing a short sale.
Most short sales are in a better condition than foreclosed homes.
Every short sale is different. It is important that the listing agent understands the seller's circumstances enough to know if the seller has a chance to be approved for the short sale AND the listing agent has the experience and dedication to keep the transaction on the right track.
It is important that you, as a purchaser, have a buyer agent knowledgeable about the short sale process to advise you.
KELLER WILLIAMS REALTY
I am curious Why are you asking? Have you had a bad experience or your friends or internet told you Halloween Stories about short sale?
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Buying a short sale is not bad as long as the results are that you get the property in a reasonable amount of time but here lies the dilemma a short sale can take a long time and unfortunately there are no guarantees.
My advise if you want to buy a Short sale is choose a realtor who as close at least two before with buyer and make sure you tell him or her to show you only short sale with listing price approved by the bank and if you make a full asking price offer on one of these you should close within a reasonable period of time. All the best
License real estate broker
Halstead homes realty
I would be happy to explain the options for terms in more detail. It is really better to do it directly so feel free to call me and we can discuss it further.
Accredited Buyer Representative
Certified Default Resolution Specialist (Short Sale)
No short sale is alike. They depend greatly on the lender involved and the listing agent.
If you do NOT want to be held a "hostage," have your agent write in a time limit into the offer - if your offer is strong, it should motivate the lender to act on your offer much faster.
I have been a listing / buyers agent MANY REALTORS refuse work with short sale or foreclosures not due to agent fault how banks do business.
You are protected by inspection, appraisal, however if you don't receive a response from offer submitted within 7 -10 working days keep moving on with your search. Amazes me people wait for monthhhssss for a bank notification sales offer accpeted MOST likely no and never will.
If you are under "gun close by 11.30.09" best move quickly.
National Featured Realtor and Consultant, Texas Mortgage Loan Officer, Credit Repair Lecturer
Follow me on Twitter: http://twitter.com/Lynn911
Good luck with you house hunting!!
Stan Reed, Realtor
Keller Willaims Realty
Make sure you educate yourself on the process and work with an agent who will represent your needs.
Please limit your comments to those that apply. I will speak only for myself in saying that my response was a general statement to a question, not a solicitation for business as others here have posted.
My name is Nestor Colon. I'm a realtor with Exit Realty The Tri-State Group. To answer your question to the best of my ability I have to ask what is your goal first and foremost? Depending what's your goal can change the response. If you are looking for a great deal, short sales are great. But, just remember all great deals do not have to be short sales. Short sales require diligence and alot of patience. It's not like a REO in which you can get a faster response. A short sale in the beginning phases has to be assigned and the waiting period varies and can be lengthy. Also, your method of buying whether cash or financing plays a part also. If you would like to discuss this further please give me a call at 215-200-1089 to schedule an appointment. I look forward to speaking with you. Thank you and enjoy your day.
Nestor Colon, Realtor
Exit Realty The Tri-State Group
1080 N. Delaware Avenue Suite 200
Philadelphia, PA 19125
"WORKING TODAY TO MAKE A DIFFERENCE TOMORROW"
No, by no means is buying a short sale bad. The most important thing is to have a Buyer Agent who is very familiar with short sales and the short sale process. It is also important that the Listing Agent be familiar with the process. The other thing you need is patience. If you need to settle in 30 days, a short sale is not for you. Short sales can take time. Some banks are better than others too.
I am a CDRS (Certified Default Resolution Specialist). What that means for you is I have taken additional training to better help buyers and sellers with the short sale process. I have access to info for just about every lender and the forms they need for a short sale.
Remember, Knowledge is Power.
Get back to me and I would be happy to help you find your dream home. Short Sale, Foreclosure, or Regular Sale.
ABR, CDRS, GRI
If you have currently signed an Exclusive Right to Represent the Buyer with another Agent this is not meant to solicit.
Getting Knowledge is the key!!
You would have to see how the short sale price compares to comparable homes of the same size, condition and location. Usually the home is listed at market value. (Same value as any other house listed that is not a distressed home). A short sale home is not necessarily a bargain financially but may be an opportunity to purchase a house that under normal conditions may not have been on the market. A short sale home usually is in better condition than a foreclosed home. (Not always the case but usually)
If you choose to go the route of a short sale keep in mind several things. The process can take a long time. You must be patient and not get discouraged or be pressed for time. Also, it is becoming more common to end up in a multiple offer situation with short sales. The banks are looking for the best and highest offers, so your offer should probably be your best possible offer from the beginning. The banks will review any offers received and choose one. The rest will be rejected and you have to start the process over.
There is much more involved here with a short sale so make sure that you do your homework and know exactly what is involved and what you are getting into from the beginning. Best of luck to you.