I realize that short sales are a very big part of out market now and will probably continue to be for at least the next few years. That doesn't mean that I like it. If you are on the selling end, it is a way to make the best of a bad situation and I encourage any seller to take advantage of that option.
If you are a buyer, make sure that you have a realtor that knows the workings of a short sale and knows what to do and what to look for. These are difficult transactions and without the proper agent to guide you, buying that house will be more difficult than it has to be.
Your agent should find out how many liens there are against the property. Any more than two and you have virtually no chance to close the deal. Your agent should also find out if the listing agent has contacted the bank and if the bank has even got a BPO done yet. That will be a good sign of how long the transaction will take.
A short sale will generally take at least 3-6 months to close, and that is if things go well. Even with the new legislation, I haven't seen things go much faster. There is also a fair liklihood that the deal will fall through at some point due to any number of problems that can arise. If you are a buyer that needs to be in a home in a certain time period, a short sale may not be for you.
There are short sales that do go through, but you really need to get an agent that knows what they are doing and anticipating the many pitfalls of the short sale process.
If you are looking for a short sale in the Phoenix Metropolitan area, please call me and I will guide you through that process.
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