If you'd like to purchase a Short Sale in today's market, it is imperative that you make sure your buyer agent understands the Short Sale process.

Before you preview Short Sale listings here are a few things that your agent needs to share:

1) Short Sales houses are sold 'as is'...no one is going to make repairs before you close the transaction....so if you are a FHA or VA loan candidate, be sure that the house is not is such disrepair that it will not make it through the FHA or VA process. Some conventional lenders may also require repairs.

2) A Short Sale is going to take a lot  of time....it is not a 'short' sale in terms of time...many Short Sales will go beyond 120 days...some less...many more than that!!! If you are not willing to wait for bank approval, don't begin the process!

3) There may be fees that the bank will not pay....delinquent Homeowner Association Fees, recording fees, tax prorates and judgments and liens on the property. Each Short Sale is approved based on what is owed on that property alone...including additional lienholders.

4) The bank 'may' pay some buyer closing costs and pre-paids...but they probably not pay ALL of the required closing costs. Be sure you have what is needed...and where it is..cash in the bank, a loan from a 401-k or a gift from a family member...just be sure that you know where ALL of the closing costs and pre-paid expenses are coming from... cash in a sock won't work.  

5) Your offer needs to be one that the bank will approve...ridiculously low offers are a waste of your time as well as the Seller...it may harm the Seller's chance of avoiding foreclosure, as it eats up the time prior to the foreclosure sale.

These are just a few of the short sale facts that yout buyer agent needs to share with you...if your agent does not understand Short Sales, then find someone who does....many agents have completed designations, like CDPE (Certified Distressed Property Expert).

BE SURE YOU ARE GETTING THE ASSISTANCE YOU DESERVE WHEN MAKING A PURCHASE IN TODAY'S MARKET!!

 
Posted by Shar Giard, CRS, GRI, CDPE on 09/21/2011 08:59 PM   Comments (2)   Short Sales in the ActiveRain Channel  
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2 Comments on Does Your Buyer Agent Understand Short Sales??

SEP
27
2011
216,670 Points 1 Featured Post Attended Rain Camp Called Shot Master

This is a great breakdown of short sale 'Need to know' items.

Re-blogging for Wisconsin Short Sale Buyers in my area. Thanks Shar!
11:11am • #1
NOV
19
2011
492,317 Points 10 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Good Evening Shar:

I agree in principle with this post with one exception...#5. Your offer needs to be one that the bank will approve...ridiculously low offers are a waste of your time as well as the Seller...it may harm the Seller's chance of avoiding foreclosure, as it eats up the time prior to the foreclosure sale.   As a distressed property specialist myself, I take exception to the fact that buyers of short sale properties should not put low offers on the table.  Here is the the strategy taught by the Distresed Property Institute: at the listing appointment the agent will get to homeowner to approve reduction in price every 15 to 30 days, which will continue until the property is sold.  Buyers have no obligation to the seller.  Just like the bank will not pay for closing costs, repairs etc, the buyer has the right to lower his offer to take such concerns into consideration.  I think many have missed the fact that banks are now dictating the rules of the transactions.  This should change.

8:23pm • #2


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Shar Giard, CRS, GRI, CDPE

Gresham, OR

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REMAX Equity Group

Address: 2072 NE Burnside Rd., Gresham, OR, 97030

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