Foreclosure Prevention and Short Sale Blog: What You Need To Know About Buying a Short Sale

So you think you want a foreclosure or short sale because it's a "great deal"...Buyers are justifiably interested in the savings a short sale can offer. However, few buyers are prepared for the process, often because it is new terrain for many agents as well. 

I would not recommend getting into this without a Realtor.  First off...not every short sale is a "deal".  Your Realtor can let you know if a short sale is right for you based on neighborhood values, condition of the home, and the stress level you can handle. 

Finding a great Realtor that is a true task master over self and others would be highly recommended here...lot's of follow up with many that could care less if you did or not.
Patience is the key here...it can be done. 

Here are some things that you should be prepared for if you have a short sale in your sights:

You must be patient. Occasionally, a short sale clicks and the thing is done almost as quickly as a regular sale. Those are the exception and not the rule. Typically, and it all depends on the lender, short sales can take 60 - 90 days.

1. You are buying the house AS IS. Just like with a bank-owned foreclosure, it is "an as" is transaction, because no principal has the funds to remedy any physical issue with the house. Get an inspection for sure, but understand the lender won't address anything and the seller cannot financially.

2. You WILL get clear title. In an approved short sale, none of the seller's back taxes, arrearage or other issues convey to you. The lender is releasing all liens. That is why you want to close the deal through a title company.

3. You probably can't "steal" the house. As a matter of fact, your offer may not even be submitted unless it is your best offer. You might get a $400,000 house for $340,000, but you won't get it for $250,000. Short sales are good deals, but they are seldom steals. Which brings us to this point:

4. The lender may counter your offer.  The house may appraise considerably higher than your offer, or your offer may indeed be too unrealistic. If the bank counters you, look on the bright side: the finish line is in sight! If the counter isn't to your liking, the smart move is to counter back. If you simply walk away, you may have nailed the seller's coffin, which has, in good faith, been working and waiting just like you have been. Negotiate. If the seller chose your offer to submit to the lender over the others, you should operate in the same good faith and negotiate. The lender may still come down some.

5. Once approved, you have a deadline to close. Typically, it is only 30 days to close or the offer is rescinded. Therefore, you should have your act together with regard to your appraisal, rate lock, inspections, and so forth. When that approval comes down the pike, you need to be prepared to pull the trigger.  

To see our list of pre-foreclosure properties and short sales for sale, visit: 

http://www.trademarkforeclosureprevention.com/properties.php

Or call us at 832-330-4588