short sale

Asked by Steve, Santa Monica, CA Sat Mar 5, 2011

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13
Craig Whitlo…, Agent, Los Angeles, CA
Tue Mar 8, 2011
Hi Steve -

The input from my colleagues below is right on target. I would add that many buyers mis-perceive that buying a Short Sale property is the same opportunity as an REO (bank-owned/foreclosure) property and nothing could be further from reality.

Dealing direct with a lender who has repossed the property can offer a few advantages:

1. The seller-in-distress issues are removed from the equation and thus streamlines the transaction timeline.
2. Banks may be willing to accept a price lower than what the loss-mitigation department would have considered acceptable during the short sale stage. This is because they are guided by the property's appraisal and generally look to the lowest rung on the ladder of fair market value.

Finally, if you do write an offer on a short sale property, make sure your agent writes in a Subsequent Offer clause that would prevent the seller and lender from accepting an offer (presumably with a higher purchase price) after your offer was accepted and escrow opened. This measure reduces your risk of wasted dollars on appraisals (required by your lender) and the physical inspection. If the lender is unwilling to accept this condition, you might be better off looking for another opportunity.

Craig Whitlock
Coldwell Banker Brentwood
(310) 488-4399
http://www.WestsideHomesGallery.com
0 votes
Tammy Hayes, Agent, Port Charlotte, FL
Mon Mar 7, 2011
Buying a short sale is not like buying a property in a traditional way. A short sale may have some risk but it also can be very rewarding. When you are searching for a short sale you will want to make sure you are prepared. Here are some things you will need to consider.

First of all, you need to make sure that you have enough time. It takes anywhere from 30 days to 6 months or even more to get an answer on a short sale. It really depends on many factors. The bank may come back with a counteroffer or reject your offer completely. In some instances you may not even hear back from the bank at all.

Short sales take a long time because the bank has to review it and they are back logged with many short sales and don't have enough coverage to complete them in a timely manner. The bank typically is willing to work with the seller and buyer on short sales to help avoid foreclosure.

One of the benefits of buying a short sale is that the bank is typically willing to accept less money for the property because of the time and risk involved. So you generally are getting the home at below market value.

If you have the time to wait, a short sale is a good way to go. One thing to be sure to ask when purchasing a short sale is, "who is handling it?" Is the Realtor an experienced short sale expert? Or is the listing agent using a Short Sale company that strictly focuses on short sales? By having someone with knowledge and expertise in short sales, it will make the process go much smoother and faster.

Tammy Hayes, Realtor, Sandals Realty, Punta Gorda, FL tammyhayesre@gmail.com
0 votes
Sara Mehrpou…, Agent, Los Angeles, CA
Mon Mar 7, 2011
You might want to read my post at: http://activerain.com/blogsview/1873810/looking-to-purchase-… which will provide information on purchasing a short sale property.

Thanks,
Sara Mehrpouyan CDPE
Rodeo Realty
Specializing in Foreclosure & Short Sale
Direct: 818-903-2040
http://www.AtHomeWithSara.com
0 votes
Ron Escobar -…, Agent, Beverly Hills, CA
Sun Mar 6, 2011
yes. Short Sales.

Ron Escobar, MBA
Broker & General Contractor
Web Reference:  http://shortsalecentral.org
0 votes
Jane Grant, Agent, Aguanga, CA
Sun Mar 6, 2011
Hi Steve: I wrote a post about short sales and posted the link below, hopefully it will help you. But if you want a more specific answer then more information in your question is needed!
0 votes
Susan Bo'ur, Agent, Manhattan Beach, CA
Sun Mar 6, 2011
Good morning Steve,
If you are looking for short sales in Santa Monica, I would be happy to assist.
Susan Bo'ur - Realtor Santa Monica
(310)586-0303
0 votes
Phil Rotondo, Agent, Melbourne, FL
Sun Mar 6, 2011
If you have about 6 months or so to wait give it a shot.
If not, try a foreclosure or privately owned one.
Web Reference:  http://www.321property.com
0 votes
Bill Eckler, Agent, Venice, FL
Sun Mar 6, 2011
"Short sales" really aren't so short.............possibly a more appropriate term to describe them would be "the impossible dream, Heartbreak Hotel, or Danny Boy"
0 votes
James Gordon…, Agent, Hamilton, OH
Sun Mar 6, 2011
"Short sales are like leaches. They both ___." Forest Grump
0 votes
allan erps,A…, Agent, Pearl River, NY
Sun Mar 6, 2011
It must be stressful to buy or Sell a Short Sale(LOL). Need a bit more info Steve!
0 votes
Helen Chong, Agent, San Jose, CA
Sun Mar 6, 2011
Hi Steve:
Buying a short sale can be stressful for some homebuyers without knowing what it involves. Therefore, it is even more important to understand what short sales are and its process, so you have some expectation going in. Finding an agent who knows how to structure your offer for a short sale is critical to the success of getting your offer accepted. It can take as long as 12 months to get an approval from the bank and close a transaction. Although, many lenders said they are improving their short sale process, the fastest short sale I have ever done still took 2.5 months from submitting an offer to closing. You can read more about the process on buying a short sale on my blog: http://helenchong.wordpress.com/2010/06/04/what-is-the-proce…
Hope this helps and I will be more than happy to answer any more questions you may have regarding short sale.
0 votes
Kathleen Bec…, Agent, Santa Monica, CA
Sun Mar 6, 2011
Yes...what are you asking about short sales? Are you looking to purchase a property via a short sale?

Let me know what you would like to do.

All the best,
Kat Becker
Prudential California Realty - Santa Monica
katbecker@prual.com
(323) 819-4760
0 votes
John Juarez, Agent, Fremont, CA
Sat Mar 5, 2011
And what is it that you are asking about "short sale"?
0 votes
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