Home Buying in 07753>Question Details

Lyndsey Camp…, Home Buyer in 07753

short sale

Asked by Lyndsey Campanella, 07753 Thu Oct 9, 2008

What is a short sale and what are the advantages and disadvantages of this kind of sale?

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Catherine "Cathy" Chaudemanche’s answer
Hi Lyndsey,

Heather gave you a few good points.
I wrote a short blog on how to get approval for a short sale just a few days ago. You might find it interesting:

I hope it helps.

Cathy C.
0 votes Thank Flag Link Tue Feb 3, 2009
If you are a buyer considering a short sale you should first ask the listing agent has the short sale been approved and if not has the package been sent to the bank and has the bank completed their appraisal yet. A short sale can take 3 to 6 months to complete, there is no guarantee that it will ever be approved. The broker sets the price not the bank, so even if the sellers agree to it, it doesnt mean the bank will accept it. A good rule of thumb is that the bank will want to recoup at least 80% of what the seller owes. In depressed areas they make take less. The whole key if you want to try and purchase a short sale, make sure you have a buyer broker who is experienced with short sales and has successfully completed at least one, not everyone has so make sure you ask. good luck with your search
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Fri Nov 21, 2008

Heathers answer is "spot on". They take months to come to a decision and once a decision is made to proceed the buyer must be ready willing and able to close very quickly. The lien holders are so backed up that it's very difficult to even get to speak to the person assigned to the transaction in order get updates. If you are seriously looking to go down this route patience is a virtue that may be well tested by everyone involved.
As a buyer please also understand that the agent you work with is also a bit "stressed". First, they are working for you and feel the stress over the the dynamics that surround your situation, be it kids going into a new school system, your lease expiration and timing of a move or trying to juggle a closing on your existing home with a closing on a new short sale home. On a personal basis, they are also feeling the stress of being a potential lien holder for their Real estate fee (commission) and needing to make sure that they actually get paid a reasonable amount if at all from the sellers side, in the transaction. The agent's commission is not 100% secure at the contracted rate.
Moral to the story...there are some great values as a buyer, there are some sad stories and emotions from the seller, there are long periods of silence...stay patient and be kind to your agent. They share your stress too.
Based upon your timing needs and financial situation, there is inventory out there that is also value priced that may not have the added baggage of a short sale. I wish you well.

Wayne Smith
Weidel Realtors
New Hope/Lambertville Regional Center
Web Reference: http://www.waynefsmith.com
0 votes Thank Flag Link Fri Nov 21, 2008
Hi Lyndsey,
A short sale is when the seller owes more on the home than it is currently being sold for. In this type of transaction the contract must be approved by the lender(s) before it can be sold.

It is sold strictly as is
Buyer Responsible for any repairs and township certifications
Buyer could potentially be responsible for any liens on the property
The bank usually takes a LONG time to approve the contract (months upon months sometimes) and then they could say NO. If there is more than 1 mortgage on the house than the time could be even longer.

Could get a good deal but in this market many sellers are offering good deals, it doesn't have to be a short sale.

I have successfully closed short sales in the past but it is a time consuming and stressful transaction. Let me know if you have any other questions.

Heather Daccurso
Weichert Realtors
Office: 732-577-0440
Cell: 732-580-5309
0 votes Thank Flag Link Thu Oct 9, 2008
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