Buying a Short Sale
A Short Sale is when the seller owes more than the market value for the home and typically does not have the means to pay the difference or balance. The listing agent will negotiate for the bank to accept the loss and allow title to transfer to the buyer.
There are some things buyers should be aware of before deciding to purchase a Short Sale. Below is a list of “cons” when deciding to purchase a Short Sale.
- May take time to get approval from bank. Depending on the bank approvals may take 30-180 days, most however are around the 60-day mark in today’s market.
- No guarantee the bank will approve the price. You may wait 60-90 days and find out the bank wants more money for the property.
- Some listing agents are not experienced in handling Short Sale transactions and could cause un-necessary delays or cause the home not to close at all. We are very experienced in doing Short Sales from the buyer’s side and from the seller’s side and can usually catch any issues the agent may have and assist as needed to prevent this from being a huge problem.
However there are some “pro’s” we must mention as well.
- Typically you will receive a property disclosure, which will outline any past or present problems with the home. Items like past floods, insect issues and major repairs are nice to know about.
- Properties are maintained and are usually not sitting vacant.
- Less competition from other buyers because not all buyers have time to wait for the approval process.
There are many great opportunities with Short Sales out
there. We are very familiar with the process were we can call the listing agent
and qualify them and the situation to provide you with a pretty close guess as
to how long the process with take. Short Sales over the last year have improved
dramatically and the banks prefer to do them as it removed a lot of liability
from them that they have with Foreclosures.
If you are a seller needing help with a Short Sale visit our Short Sale website at: http://www.GOwithShortSale.com