What is the process of buying a "short sale" home?

Asked by Malita215, Philadelphia, PA Mon Apr 1, 2013

What are the pros/cons? Benefits? Disadvantages?

Thanks

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6
Alan Openshaw, Mortgage Broker Or Lender, Southampton, PA
Mon Apr 1, 2013
Hello Malita,
If you are buying a short sale, your process is just the same. The buyer accepts the offer and the mortgage process moves as normal. However the seller's lender has to approve the offer also. The seller will provide tax returns w2's and bank statements to show that they are experiencing some kind of hardship. The seller's lender also want's to see that the property has been marketed properly and that the sellers or their realtor has done everything one could expect of them to maximize the sale price. The seller's lender will also do it's own appraisal of sorts to try to figure the value of the property. That does not mean they are always right. I have found that as long as the all of the information is provided in a timely manner, and that the property has been marketed correctly that the short sale will close in a reasonable time. Problems arise when sellers and their agents do not conform to the process, do not follow up with the lender and do not know what they are doing. At the end of the day this is a non performing asset for the lender and they want it off their books. However the note may be owned by someone other than the lender servicing the loan so the lender has to follow the same procedure for every short sale so that there can be no suggestions of impropriety from the note holder. If the short sale is handled correctly it will get done. Some of the so called short sale specialists out there are not as good as they claim so be careful. If the deal goes on too long you will likely lose faith and move on to the next deal. There is no reason why a short sale should close in 120 days or less. I have done them in 45 start to finish and it not even my primary focus.

Regards,
Alan Openshaw
Cornerstone Lending Inc
Southampton Pa 18966
215 953 0800
cell 267 992 7276
VOTED BEST IN BUCKS 2010 & 2012
NMLS ID 143960
1 vote
Iperez1127, Home Buyer, Philadelphia, PA
Mon Apr 1, 2013
Is there any house's for a $1 dollar in Philadelphia to buy?
0 votes
Len De Finis…, Agent, Philadelphia, PA
Mon Apr 1, 2013
The short sale purchase is an excellent way to purchase as long as you are willing to run the distance with the ability to be turned down.
Pros Some great bargains on housing
Cons- Long process
Disadvantages you may wait a few months for an answer
Benefits- A home that you want.

Be happy to set an online video conference with you just give me a call .

Len De Finis
0 votes
Len De Finis…, Agent, Philadelphia, PA
Mon Apr 1, 2013
The short sale process provides exceptional opportunity if you are willing to go the distance with the possibility of getting no where. We have a team of agents who specialize in this process with buyers and provide a free consultation via online live video. Give me a call
0 votes
Philip J. Cu…, Agent, Feasterville, PA
Mon Apr 1, 2013
I guess I'm just the kind of person that needs to discuss explain this process in person. I will be closing the last of my short sales this month. I believe that the reason I have less problems is due to the training I do with the banks and their reps. Please call me with you questions so I may give you the answer and where it came from. Office 215-725-5700 X49

Philip J. Cunningham Sr
V.I.P. Realty Corporation
7942 Bustleton Ave
Philadelphia,PA 19152
215-725-5700X49
philcunningham2004@yahoo.com
Web Reference:  http://www.GreatPaRE.com
0 votes
Ryan Garrity, Agent, Philadelphia, PA
Mon Apr 1, 2013
As a buyer purchasing a short sale, the process is not too different from a standard transaction. Traditionally, when a buyer purchases a home they just have to get the seller to agree to their terms. With a short sale, the terms are subject to bank approval (the seller's lender), and that can often times be a lengthy process depending on the lender. So, patience is a must. Other than the bank's involvement, not too much else changes. There may be a few bank required addendum/forms that you may have to sign off on.

As a buyer, there aren't necessarily benefits or advantages. They come into play more for the seller, in that a short sale is an alternative to foreclosure and the seller is getting the bank to agree to accept less for the property, then the seller currently owes. But as a buyer, you will still be paying market value based on present day conditions.

If you would like to discuss further, then please don't hesitate to reach out. Thanks.


Best,

Ryan C. Garrity
U S Spaces, Inc.
2043 Locust St., 1F
Philadelphia, PA 19103
215-829-8850 x208
215-514-9424 (cell)
ryan@usspaces.com
0 votes
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