what should I be aware of when purchasing a short sale condo?

Asked by Marie, Brookfield, WI Mon Jul 7, 2014

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6
Ranj Mohip, Other Pro, Chicago, IL
Tue Jul 8, 2014
From an attorney's point of view, I would suggest getting a copy of the 22.1 condo disclosure and find out how far behind the assessments are. Often, if the bank agrees to the sales price, they might not agree to paying the back assessments. Good Luck.

Attorney Ranj Mohip is a Chicago real estate attorney. The information in this answer is general information and is not intended as legal advice. Further, answering this question or otherwise contributing as a member of Trulia.com does not create an attorney-client relationship. Remember--consult the best real estate attorney in Chicago or in your respective area. Contact us at http://www.ChicagoRealEstateAttorney.com for more information.
1 vote
Bob Brandt, Agent, Schaumburg, IL
Mon Jul 7, 2014
That question deserves a long answer that your Realtor could go over for about 30 minutes.
1 vote
I agree that's a phone call or in person.. too many details.. Ask your RE/MAX Realtor.
Flag Mon Jul 7, 2014
Anna M Brocco, Agent, Williston Park, NY
Tue Jul 8, 2014
Each short sale is unique, so different factors need consideration, therefore you agent can better address such a question...
0 votes
Annette Law…, Agent, Palm Harbor, FL
Tue Jul 8, 2014
Marie,
I am not making lightly of your question but in real estate reality, this is like asking the meaning of life.

It is nearly IMPOSSIBLE for you to understand what you are about to become engaged in.
You would be well advised to pick up the phone and call a Glenview REALTOR experienced in short sales. Ask them, "How many short sales have you CLOSED in the past two years? Yep, some take as long as two years. OThers that 2 years and still fail.

In closing, all the horror stories, all the risk, abuse, neglect, and betrayal you are to hear about are TRUE!

Don't wade into this without an experienced guide.

Best of success,
Annette Lawrence, Broker/Associate
REMAX
Palm Harbor, FL
727.420.4041
0 votes
Nicholas S N…, , Rockford, IL
Tue Jul 8, 2014
Good Morning,

I suggest you work with a experienced realtor that knows short sales. Also, understand that short sales can take months to get done, depending on how quickly the bank is willing to respond to your offer and what conditions the bank may put your offer.

Also, make sure you are knowledgeable about the condo association. Is this particular condo in arrears on the association dues? How many other units are in arrears on their dues? Are there any special assessments coming up for repairs that you will have to pay for?

Lastly, depending on the type of loan you are doing, make sure the association is approved. Some loan programs require the association to be on their approved list.

If you would like to talk more about financing for the purchase of your condo, I do a free consultation and review income, credit & assets to get you a preapproval for the purchase. Contact me at the below phone or email if you have questions.

Good Luck,

Nick Nelson (NMLS#384413)
Mortgage Lender
Community Bank of Rockford, A Division of Harvard State Bank
2470 Eastrock Dr.
Rockford, IL. 61108
815-289-0880 - Phone
nnelson@thehsb.com - Email
0 votes
Alain Picard, Agent, Puyallup, WA
Mon Jul 7, 2014
One thing to be aware of if you aren't paying cash is the type of loan you intend to use for the purchase. For example if you are planning on using a FHA loan you might want to find out if the Condo will qualify for a FHA loan since a lot of Condos don't. This could save you the time of waiting for the lenders approval of the short sale only to find out months from now that your lender won't be able to do the loan for you. Another thing to consider is whether or not you plan on occupying the property or renting it out. Some Condos have rental caps and won't allow owners to rent out their units if the rental cap is reached. I would find out everything about the Homeowners Association now.
0 votes
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