What are the additional steps required to purchase a home through a short sale?

Asked by Martin Hacala, Cleveland, OH Mon Feb 23, 2009

How much additional time does it typically take to obtain approval from the noteholder?

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Steve Ward, , Chicago, IL
Wed Feb 25, 2009

While purchasing a short sale can be a really great deal, please know that they aren't the only deals out there. While facilitating a short sale can be a lengthy process, there are many sellers out there who just want to get out from under the financial burdon of a property. Find yourself a good agent who will not only work the short sale market, but one who is also willing to play hardball with sellers directly. Can make for a quick close and less hoops to jump through!

Best of luck!
1 vote
JonTheBanker, , Chicago, IL
Mon Feb 23, 2009
Hi Martin,

The short answer is that there are not really any additional steps you, as the buyer, need to take. The seller/seller's attorney and bank needing to approve the sale itself are where most of the work lies. There are also additional obstacles to be aware of when financing short sales but that is for us, the lender, to engage. As far as time, it can be a 3 week or 3 month process. It really depends upon numerous variables eg; Is the seller/seller's attorney and bank's legal/financial team organized and efficient? Does the bank holding the defaulted note have a huge inventory of these kinds of properties?

Jumping into it is a great step and one I think you should take. Just secure the right people to help guide you and navigate the transaction. If anything is further is needed, please call. We appreciate you as a consumer and customer alike.
1 vote
Bill Eckler, Agent, Venice, FL
Mon Feb 23, 2009

Unless you are working with a "pre-approved" short sale the process can be draining and take 3-5 months. You should also be aware that the vast majority of short sale offers do not make it to closing because of a number of circumstances.

Our recommendation is to find a local agent that can walk you, step-by-step through the process and lean toward pre- approved opportunities. These sale prices, in theory have all ready been approved by both the owner and the bank and should streamline the time needed to close.

Good luck
1 vote
CMLHoldings, Other Pro, Bartlett, IL
Mon Feb 23, 2009
I closed on 3 short sales last year and here is what you will need.

-3-6 months of playing the waiting game.

Don't be pushed into believing that any Realtor out there is an EXPERT at short dales and or Foreclosures. They are all clueless about what the next step is since every lending institution handles these situations completely different. Most buying Realtors pretty much (I'll probable hear from them on this one) put you on their outlook reminder list to call the selling Realtor once a week and ask if anything has changed (Most Selling Realtors have a simple answer to that weekly call " You will be the first one I call when the bank calls me").

My suggestion to you is to not use a referred Realtor from a Realtor form out of town. The out of town Realtor is just looking for a little something from the Realtor that he refers you to.

Instead, interview 3 Realtors in your area and select the one that you feel that you can trust (Also, it does not hurt to have them tell you how many homes they have closed on for their clients in the last 90 days, that is, if they will be honest with you). This way you can feel out the full time Realtor from the part timers).

Look for a Realtor that has signs out in the area that you are looking in. Realtors tend to focus in certain areas.

Good luck!
0 votes
David Veenst…, Agent, Portage, MI
Mon Feb 23, 2009

There are lots of challenges in getting a short sale to close. We would be glad to refer you to an agent in the Cleveland area that can help you walk through the process. Remember, 99% of the time there is no cost to have a buyer agent represent you so there is not a reason to try to do it on your own. When you work with an agent you get the benefit of their expertise, knowledge, systems and negotiating skills.

We can help you find the best agent, We are a company that pre-screens and evaluates REALTORS and will find an agent who passes through our tough screening process. We personally interview the agents, ask them to complete an application that tells us about their experience and education AND we personally get in contact with a random sampling of the agent's past customer or clients to MAKE SURE that they provide excellent service. If an agent doesn't pass the screening process, we don't recommend them. If they don't continually get good recommendations from customers we recommended them to, we no longer recommend them.

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