1. Can potentially get a great deal
1. Can take a very long time to close
2. Seller usually retains right to market property up to close (someone can "swoop" in and steal it from you the week before closing after waiting patiently for months to close)
3. Listing agent might have not submitted a complete SS package to lender
4. Listing agent may have never closed an SS before
5. Bank may take forever to respond to offers/inquiries
6. Could be more than one lien on the property - and lienholders may not agree on how the proceeds should be allocated between them.
The pro's outweigh the con's for me personally, as a buyer, due to the sheer amount of deals out there (foreclosures, etc.). However, if the other side of the transaction has an agent/attorney who are well-versed in these transactions..........it "can" go smoothly.
Cons: it can drag on for many months with no guarantee of closing. Knowing upfront that the listing agent and seller have established a relationship with the lender's short sale department will go along way in determining how long the process can take.
REALTORÂ® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
cons: The timing lies with the Bank that owns the property, You don't know what has happened in the house because you have no disclosure.
That is straight forward and simple.
Give me a call if you have any other questions.
Glenn Smith - REALTOR
Capital City Sotheby's International Realty
512 771 6371
If you have someone looking to get in in 30-45 days, I would not suggest a short sale.
I just closed one 2 months ago with ASC(Subsidiary of Wells Fargo) closed in 5 months with the agents paying for 2 outstanding trash and sewer bills as well as being knocked down from 6 to 5%. Banks attitude was if this is not agreeable tell us now so we can continue to foreclose on the homeowner. Owner received Nothing because it wasn't a HAFA transaction, and buyer swore they didn't have any more money to contribute.
So Kyle in all the time that was spent on this transaction, another 3 non-distressed sales may have been completed?
Good luck if you choose to do them,
1. How many liens on the property
2. What kind of liens (Tax, HOA, Federal Tax)
3. What is the status of the short sale file
4. What kind of loan does the seller have with their lender.
If the list agent can give these answers easily when asked, might think long and hard before making an offer.