Thursday, May 13, 2010

What to expect when buying a Short Sale

Okay, I am a Short Sale specialist. People come to me, asking what will happen once they decide on selling their home in a short sale and I advise. My website is full of information on the subject.

But what about Short Sale Buyers?

Short Sale Buyers, hear these horror stories about short sales not being "short", so here's a little summary of what to expect and what is needed to buy a Short Sale Property.

First you need to find yourself a Realtor that has Short Sale experience, interview your Realtor and ask him what Short Sales he has worked on and don't be afraid to check on his referrals.
Most Realtors don't like to sell short sales and will try to steer you away from them, if that is the case and you are really interested in the house, then I suggest that you thank your existing Realtor for his help, cancel your agreement with him and contact the listing agent directly.

Ask if the seller is motivated, if the seller is not motivated or hard to reach then the Shortsale can become a real pain. In most cases the sellers' lender will need updated financials during the process and it is not the first time that a shortsale is upheld because the seller cannot be reached or is not motivated to send in extra paperwork.

Ask if the listing agent has any experience in short sales, if the listing agent only has one or two short sales in his portfolio then he is likely to have no clue on how to follow up with the sellers lender.

Upon signing a short sale contract, always add a clause stating that the deposit money will be put in escrow upon receipt of the approval letter. An approval letter is given by the sellers lender once the short sale has been approved.

Call and email your agent at least once a week and ask for an update, keep record of the updates and make them aware that you do.

A normal, well followed up short sale, should take no more than 45 to 60 days, add to that another 30 to 45 days for you to get your funding and you are in the house as quick as any other home that you would purchase.

Call me at 407-566-9495 if you have any questions,
Good Luck!