Jeff - what a nice person you are. But, the previous poster is dead on. There's no guilt in buying a short sale. A short sale is a win for the seller and for the bank, and for our overall economy.... and structured and managed carefully, a win for the buyer, as well. When we work with sellers in a short sale situation, and we're successful, they hug us and cry and thank us for helping them to avoid foreclosure. Then, they lick their wounds and plan to get back on their feet financially to buy again in a couple years. It's all good. Just beware of the risks in a short sale and make sure you're covered.

Best of luck!

Hi Jeff,

I echo the answers below. You should definitely be considering short sales. Read some of the other posts regarding them.... you should be sure that you have an agressive agent. I posted yesterday on this same topic so if you would like to read further you can see that by clicking on my profile.

I wanted to provide a different perspective as to your comment below about feeling bad about taking advantage of someone else's loss. We represent a lot of sellers in short sales that are facing that predicament for a number of different reasons. I can tell you that in many cases the properties that are being sold via short sale are headed towards foreclosure. It is a MUCH better option to short sale than have your home foreclosed. Often the seller can stay in the home a little longer, most of the time mortgage/rent free. This can often allow them to get on their feet again financially. And the buyer purchasing the property is providing the prevention of the foreclosure. So as a buyer, you are often assisting in their situation and shouldn't feel guilty. Having compassion and patience is key.

Best of luck :)
Tara

Tara Steinke
San Diego Real Estate Specialist
Residential Sales and Appraisal
619-384-6014
SDRealtor.Tara@gmail.com

Thanks to all of you.
When I see the nice houses going for such low prices it just kills me not to try to buy one.
I must say that both my wife and myself feel that doing so would be taking advantage of the ones that are losing thier homes.
It doesen't make me feel any better to know that I was pretty much in the same position,and that is why I'm selling my home in 94087 and buying in Amador county.
This is the best site ever to get help with any real estate situation.

They are being completed with much more frequency now than ever before, but there are risks and you do need an experienced agent; and tons of patience. If you want an easy sale, look for traditional sales, even an REO is easier than a short sale. However, in many markets if you rule out short sales, you won't get a house. Also, beware that if there are multiple banks involved, it significantly impacts your success rate - again, not impossible, but a short sale with one lender is much better than a short sale with multiple lenders.

Jeff,

All of the responders are correct, short sales take time, patience, and experience but they can be a good value. I would caution against focusing solely on them. Continue to look at other houses that meet your criteria even after you have made an offer on a short sale. It may take weeks to get a response to your offer and most often that response is a "no" with no counter offer. You can also instruct your agent to search for homes that are "approved for short sale", which means the bank is ready to get serious and negotiate in earnest. By this time, the bank has already done an appraisal on the property and understands its current market value. My experience has been that they are reluctant, at first, to move far from the appraised value. Some banks even opt to go to foreclosure rather than take a low ball offer. If you really want the house, be persistent with your offer and realistic with the price.

No need to stay away from short sales as long as you're not in a hurry to complete the transaction. Short sales have to be accepted by the seller and the sales price approved by the lender. It's not unusual for the approval from the lender to take 6 to 12 weeks. In the interim you have a valid contract once it's accepted by the seller. The approval by the lender is considered a conttract contingency. If a better opportunity comes along, you can't act on it unless your contract allows you to cancel the contract at any time prior to the lender's approval.

As the other agent said, look for an agent that is experienced in short sales. Some agents claim to be "short sales experts", but unless they've attended some classes and closed some transactions, "ex" part is still a has-been and the "spurt" part a suppressed drip. A good question will always be "How many short sales have you closed?"

Hi Jeff,

That is a great question. The bottom line is patience. If the mortgage is held by a larger lender, the process can take some time. However, if it is a local lender, the opposite may be true. Now is a great time to buy. Find a Realtor that is familiar with the short sales in your area. And I would become as informed as possible as a buyer. Good luck to you!

Hello Jeff- There are a lot of foreclosures in the areas that you are looking in, and we should be getting more within the next couple of months....as for a short sale, yes, they are a pain, but if you are willing to hang in there, you can get a great deal on a home. If you have any other questions, please just let me know. You can call me if you have any questions regarding properties. Karen Griffin Realtor 209-639-8170

Short sales are more complicated and take longer, but they can be completed successfully. They are also a good way to get a discount on a property that will often be in much better shape than a foreclosure, since the owner is likely living in and taking care of the home.

You do need patience, and you do need a realtor with experience in short sales. When contacting prospective buyer's agents, ask if they will show you short sales. Some agents avoid them like the plague, but others understand the opportunity they represent.

Good luck.