We are interested in a potential short sale putting 60% of the purchase price down. Is it hard to purchase a short sale?

Asked by thearringtons3, Grandy, NC Tue Apr 24, 2012

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Liz J. Turner, Agent, Duck, NC
Mon Feb 11, 2013
I agree that Short Sales can be a long process but they have gotten easier and a much higher percentage are now actually closing. I closed on one a few months ago and from showing to closing was less than 45 days. If the Short Sale is being handled correctly by the bank and agent then all parties should know what the property is listed for and the bank should have already had a current appraisal done. I have run into big problems when the owner and listing agent have not really applied and started the "Short Sale" process and this can be very frustrating.
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Nancylynn Ev…, Agent, Norman, OK
Tue Apr 24, 2012
Short Sales are generally a lenghtly process, however, depending on the individual who has the listing and how far into the short sale process they've taken it up to the point before receiving an offer. I currenlty have one in place and we've submitted an offer, however, purchaser is not in any rush and qualified without having to sell her current resident. Therefore, is willing to wait. You need to be patience and be able to ride the storm through! If you're in no hurry, I'd recommend making the offer and then just sit back and wait to see what's in store.
0 votes
Charlene.ho…, Agent, Chesapeake, VA
Tue Apr 24, 2012
Hello,

Based on the bank and if there is a 2nd mortgage it will get more involved. If just a 1st mortgage it is still a lengthy process, but potentially longer when a 2nd is involved. Doesn't really matter how much you are putting down, until the bank(s) approve the short sale you are stuck in the rat race of waiting. Typical time frame could be any where from 2-3 months or even 6+ months.
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Irina Karan, Agent, Aventura, FL
Tue Apr 24, 2012
Short sales are probably the hardest types of sales to be involved in.

But, if the negotiator negotiating the short sale is great, short sales become successful.
Short sales take a long time, and they depend on the hardship of the seller (there has to be a hardship situation), on the lenders approving the short sale, on the underlying investors, on liens on the property being negotiated, on the knowledge of both agents involved etc.

Prepare to be very patient, yet, to follow up weekly. Make sure to put in the contract that only one contract will be presented to the lenders, while your contract is active...(this is because some agents send all contracts in). Make sure that back up contracts are not signed (not all agents know how to do short sales).

Hope this helps,

Irina Karan
Beachfront Realty, Inc.
IrinaKaran@gmail.com
0 votes
Tim Moore, Agent, Kitty Hawk, NC
Tue Apr 24, 2012
You could put down 90% and it will still be hard, why? Because the bank has not set the listed price, most of the time they have no idea what it is listed for until an offer is written, accepted by the seller and submitted to the bank for approval. Then the bank decides if they will accept the offer or if they want more. Big down payments, like cash offers, don't mean that much to banks because they can wait a few weeks for a loan to go through. The bank will still be losing money and a huge down payment is not going to change that. Once they agree to how much they will lose the buyer with the best down payment has an advantage, but it in no way guarantees they will accept the offer and they could still ask for more than the listed price. Don't short sales sound like fun?? They aren't.
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