It seems that many buyers are being led to believe that all the real home buying deals out there are short sales and repossessed properties. Not always the case!
Here are some things to consider for those buyers thinking of purchasing an Owensboro, KY short sale:
1. Prepare to wait...and wait...and wait. Most short sales are taking between 7 and 12 months to close. My personal experince has been that I have not heard anything (nada, zip, not a word) from the lender until the third or fourth month after the contract was submitted to them. By that time, all the documents that the seller had to submit, (i.e. pay stubs, bank statements, etc.) are over two months old. So now, up to date docs have to be resubmitted. Then, we have to allow 48 hours for the lender to receive the new docs, then we start telephone tag all over again! Fun times!
2. You may do a home inspection, but don't expect the seller to do any repairs. The seller doesn't have any money. That's why it's a short sale.
2a. Oh, the lender won't do any repairs either.
3. Even though in most cases the seller won't do any repairs, I always recommend a home inspection. You may have to turn on the utilities in order to do your home inspection. If you are getting an FHA loan, the utilities will need to be on in order to do the appraisal. When you turn them on, you are liable for anything bad that could result from turning on the utilities. You and the home inspector definitely need to be present when the water is turned on. If there is a busted pipe, someone needs to turn the water off at the meter before you end up with a $500 water bill! Also, if there is a gas leak and the house blows up . . . well, do you have insurance that covers that?
4. Beware of properties that have been "winterized". I have yet to see a property that has been "winterized" that didn't have a busted pipe!
5. All this being said, short sales are obviously not a good choice for buyers who are on a possession schedule.
6. Also, if you're getting a loan that has minimum property condition requirements, a short sale may not be prudent. Due to the fact that most short sales have been vacant for a while, they usually are not in the best of condition. Even if they haven't suffered vandalism, they have been neglected.
As you can see, buying a short sale property is NOT an easy task. Unless you are an investor, in many cases a short sale will not be the best home choice for you.
However, if the home you fall in love with is a short sale and you want to start the buying journey, make sure you are working with an agent who is experienced in the process. During the last short sale webinar I took, our instructor informed us that only 30% of short sales actually close. That number holds true in my personal experience as well.
For answers to all of your Owensboro, KY short sale questions, call me, Karen Pannell
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