I have experinece doing short sales, As and agent that has encountered different situations in short sales, I decided to write an ebook that explains the process in detail
Please read it here,
Cons....long delays in contract submission, acceptance process. Must be patient.
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Because short sales are more complicated as far as the process, and are increasing in number given the current mortgage crisis, There is a certification that is offered on a national level, CDPE, Certified Distressed Property Expert. I have taken the training and am certified as well as experienced. I found the training to be the best investment of time and money I have ever made in my real estate business. I have been equipped by the best to handle both the selling and the buying end of a short sale transaction.
One of the aspects of dealing with distressed properties is that there may be options other than a short sale. The CDPE training has equipped me to help people explore all the options, whether they end up selling or not. I'm happy to be of service whatever the case.
The pros and cons can vary depending on if you are the seller or the buyer. I think you are the buyer so I will briefly answer based on that. When I am showing property to a buyer that is a short sale I remind them of the time frame that it can take. Short sales do not work for every buyer depending on their situation. If my buyer wants to pursue the sale, I talk with the listing agent to find out how far into the process they are. There are hoops a seller needs to jump thru for the bank to consider a short sale. Just because it says short sale approval required in the listing does not mean the lender has even considered it. I want the buyer to have a good understanding of where the seller is in the process before we proceed. I also like to find out as much as I can about the house, such as what the seller paid for it, have they had other offers that the bank has rejected, is there a short sale company involved in the negotiations betweent the bank and owner, etc. Knowledge is power and the more you know before you write an offer the better prepared and better your decisions will be. While there is always the interest in foreclosures and short sale because of the perceived value they will bring a buyer, it is not always the case. I recommend my clients look at all of the properties in the price range that meet their needs. The other post offer some good info and I hope mine helps too.
I'm assuming you're interested in purchasing a short-sale property. There are many things to consider. A short sale is where the homeowner owes more on the property than its market value, and the homeowner's lender has agreed to accept less than the balance owed on the mortgage. This is usually a situation where the owner is still making monthly mortgage payments, but realizes they're not in a position to keep the home. A short sale has a lower impact on one's credit score than a foreclosure. An owner who arranges a short-sale generally has taken better care of their home than someone who allows their home to foreclose. However, in some cases, the condition of the property could be such that some work/repairs are needed. The next major concern is the fact that the seller's lender has to approve offers. Due to the huge backlog many lenders are facing, it could take 1-3 months to get a respone from the lender. You have to be in a position to wait. When a response does come, it may be a rejection or a counteroffer you're not willing to consider. I hope this gives you some of the detail you're looking for.