Home Buying in Chicago>Question Details

beverlyknox, Home Buyer in Chicago, IL

short sale v's purchase

Asked by beverlyknox, Chicago, IL Sat Feb 23, 2013

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11
Suzanne Hamilton’s answer
Good question and a tough question for all right now. Short sales are a roll of the dice. Sometimes they take forever and go through. Sometimes they take forever and fall through. Unfortunately 60% of short sales do not go through, but more than half is because of buyers bailing, then nearly half is because the banks come back too high (sometimes even above the listing price) and less often because the seller either doesn't qualify for a short sale or does not cooperate.

Not great odds, but that means 40% do go through. My recent experience is that the banks are getting better at their timing, but what the banks want on price and what they get still can be an issue.

The long and the short is, short sales can reap rewards in price. Foreclosures are easier and faster, so look at the market to see which path you want to take. If you walk away from a short sale you can lose your earnest money, but you can also get protections with contingencies. Not the best way to start though. If you have patience, a lot of patience and time to wait and if you are careful not to get your feelings hurt if it does not succeed, then go for it. But keep your eyes on the market, just in case it does fall through.
1 vote Thank Flag Link Sat Feb 23, 2013
Had a short sale that took 6 months till the bank accepted the offer then they only gave us 2 weeks to do the financing ... Of course my team rose to the challenge and we did a Guaranteed Rate closing in14 days!
1 vote Thank Flag Link Mon Feb 25, 2013
Nothing SHORT about a short sale
1 vote Thank Flag Link Sun Feb 24, 2013
Hi Beverly,

Trulia asked all us brokers the question about short sales on February 4th. My answer was rated the best answer by Trulia http://www.trulia.com/voices/Home_Selling/Is_it_guaranteed_t…

Beverly you can get extremely good deals in short sales however many times from the point you submit your contract to the time the bank approves it can be lengthy. In a straight purchase or purchasing a home that already been foreclosed on it will normally take the traditional time from contract to close. Just remember when you are ready to purchase make sure you are pre-approved so that when your broker presents an offer your offer will be taken seriously.

If you have any questions feel free to email me manuelbrown@imovechicago.com
1 vote Thank Flag Link Sat Feb 23, 2013
If you are in a rush, then do not do not engage in a short sale. The process could take several months before you even receive a response back from the seller's bank. If the buyer is patient then a good deal could possibly be attained.
0 votes Thank Flag Link Sun Feb 24, 2013
Short sales take so long on the buy side, I would go with a regular sale. Only 25% of them go through in the States.
0 votes Thank Flag Link Sat Feb 23, 2013
Not sure what your question is. Short sales take 2-5 months before the lien holder decides whether or not they will accept your price.
0 votes Thank Flag Link Sat Feb 23, 2013
Hello Beverly,
Suzanne's response below was well stated.
"Unfortunately 60% of short sales do not go through, but more than half is because of buyers bailing, then nearly half is because the banks come back too high "
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Real Estate professionals do track the sales data regarding short sales. For many short sales the process takes nearly a year, in one case of mine over 2 1/2 years, only to fail in the end.
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Generally, in Florida, a buyer can save 15% through the purchase of a short sale. In a recent community in which I just published a "Market in a Minute' report, the short sales saved 37%. This is an EXTREMELY rare occurrence.
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Short sales are suitable for a select set of buyers. Check with your agent to see if your needs are compatible with a short sale. For over 70% of buyers, short sales have proven to be incompatible in Florida. The complex nature of short sales and assortment of individuals or organizations involved in the process make the successful closing of a short sale, as close to a miracle as anything I have witnessed recently.

If you believe in miracles, short sales may be for you.
However, miracles are not discounted and take an eternity.
0 votes Thank Flag Link Sat Feb 23, 2013
You can get some great deals with Short Sales. However you should make sure your real estate professional is knowledgeable and that deals with Shorts Sale Properties. Deciding to purchase a Short Sale can be a lengthy endeavor. You can close in 45 days or a year and 45 days. Most Banks now a days are getting better with their timelines but it is not a quick and easy decision. Being a CDPE has allowed me to quicken the process in many cases however there are never any guarantees.

I would like to recommend that you utilize my free website at http://www.idealhomesinchicagoland.com. You will be able to search for properties throughout Chicago and the surrounding areas. My website features up to date information, so you will not be finding homes and properties that are no longer available like on some of the realty websites that you may be using. My website also offers an array of neighborhood and market information that can help you make your determination on homes and locations. My featured partners are industry leaders that can assist you in making any realty transaction easy and transparent. I welcome you to utilize this amazing tool. As always I will be available to answer any questions that you may have.
0 votes Thank Flag Link Sat Feb 23, 2013
Beverly,
If you are questioning whether to do a short sale first or purchasing another property and then trying to attempt a short sale later, please call me.

This is not necessarily an easy discussion and acquiring information thru Trulia will get you mixed responses. Always seek counsel from a real estate attorney specializing in this area.

I have several I can recommend and review the process if you are considering.

Best regards,
Laura Meier l @properties
Broker
Short Sale Specialist, Foreclosure Consultant
212 E. Ohio, Chicago IL 60611
email: lmeier@atproperties.com
CELL: 312-282-2122 /FAX: 312-506-0222
0 votes Thank Flag Link Sat Feb 23, 2013
Beverly;
Do you have a specific question??
0 votes Thank Flag Link Sat Feb 23, 2013
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