Buying a Short Sale

How does this work?? Is the process different than buying a house that is not a short sale?

Pros/Cons?

TIA

Re: Buying a Short Sale

the process is largely the same but it tends to take longer, and you're typically buying the house "as is".

Re: Buying a Short Sale

I wouldn't say the process is the same


The bank can require different documents then a regular seller- some want to see proof of down payment etc

there are many questions you should be asking before you buy a short sale

1- how many banks are involved

1- tends to be straight forward

2- takes much longer- b/c the second bank gets $2k and they can hold up the whole thing for months

2- who is handling the paperwork- I have not had good experices with attorney handled short sale- with the exception of 1 or 2

3- is the homeowner behind and by how much

4- Is the homeowner 100% on board- many times thru out the months they will be required to provide docs to the bank- from pay stubs to bank statements- this slows down the process and if they don't provide them the file just sits there

5- is the house vacant? has it been winterized? Can it qualify for a regular mortgage?

it's very important that you use an agent who understands short sales- and that they ask the proper questions to the sellers agent to make sure they understand short sale

I just lost a deal b/c the sellers agent had multiple contracts out on the same house- While an agent like myself- a CDPE (a cerfited distressed poperty expert) would never have multiple contracts out

every short sale is unquie- 85% of that handled by agents like myself close

the stats on non-certified agents is no where near that

Re: Buying a Short Sale

Thank you SO much for all of the info, Beth!

We are just casually looking at houses now but I am seeing quite a few short sales as I search so I was curious. Thanks again!!

Re: Buying a Short Sale

your welcome

feel free to FM me any questions you have

and let me know if you want a listing book account!

Re: Buying a Short Sale

My husband and I recently attempted to buy a SS. I do not recommend it to anybody. It's a very long and frustrating process and there really is no way to gaurantee the outcome. We backed out after 6 mos. 5 mos into the process the mortgage was sold! Everything had to be completed again, including being approved for a short sale. Also, the list price is just a starting point. The first bank we dealt with was citibank and their counter offer was 55k more than list. Hope that helps.