Use Short Sale Waiting Period Wisely

By
Real Estate Broker/Owner with Cam Realty and Property Management
http://actvra.in/W5j

Use Short Sale Waiting Period Wisely

Waiting for Short SaleSome stay as far away from Short Sales as they can, some go after them. If you are a Buyer who has put an offer on a Short Sale listing and waiting for the Short Sale lender’s approval, you must use this time wisely.

-Short Sale Lender may not approve the sale price- Although the short sale process has improved over the past couple of years, waiting period continues to be long(typically 3-4 months). If home prices increase between the time the offer is made and the time short sale lender orders a BPO(Broker Price Opinion) or an appraisal, chances are, fair market value of the house will be higher than offer price. Buyers of short sale homes must prepare themselves to pay higher for the home than original offer.

-Distressed homeowner may not qualify for Short Sale- You must keep in mind that distressed homeowner(seller) must provide certain documents to their lender in order for the short sale lender to process the short sale of the home. If they’re not able to provide such documentation or don’t meet the criteria, short sale lender may not approve the short sale.

-Buyers who are financing must qualify for the loan at the end of waiting period- If you’re financing, be sure to keep your credit scores same between the time you first apply for financing and the time of closing which could be anywhere between 3-9 months. This is not the time to purchase a new car, furniture or go charge happy! If your income to debt ratio goes down during the waiting period, you may not qualify to buy that house you had been waiting for.

Buyers should use short sale waiting period wisely by asking updates on the process from their Realtor on a weekly basis and also get market updates and know which direction home prices are going. If prices are increasing, prepare to pay more for the house than your offer. Don’t assume the short sale will be approved, keep your options open.

If you’re a homeowner in Clermont, Minneola, Groveland and Winter Garden areas and behind on your  mortgage, Short Sale might be your best option, give me a call at 407-929-1852 to discuss your options. Are you looking to buy a home, now is the great time, don't delay, I would love the opportunity to meet with you. You could email bethatalay@gmail.com or visit my website www.wheretoliveinorlando.com

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Ambassador
2,470,723
Ed Silva
RE/MAX Professionals, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Short sales are never cut and dry, and the participants should all understand the process and the need for patience. Good Post

May 21, 2013 01:52 AM #1
Rainmaker
1,297,924
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Hello Ed, ohhh..yes..patience!! We all need that when working with short sales, don't we?

May 21, 2013 01:57 AM #2
Rainmaker
2,423,726
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale - Probate Broker

Beth,  Short sale do close and they are never a guarantee.  Keeping all parties in the loop of communications is key. Buyers or their agent cannot assume the listing agent knows short sales.  We know there are many agents listing short sales that do not know how to manage them. If we are not receiving updates ... that is a red flag, IMHO.

May 21, 2013 02:22 AM #3
Ambassador
2,548,303
Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate
Hi Beth - Good advice. The few short sale homes we have sold were all very difficult for our buyer clients, so we always have a long discussion before heading down that road, and we emphasize exactly the points you raise in your post.
May 21, 2013 07:16 AM #4
Rainmaker
486,677
Jim Patton
Century 21 M&M - 209-404-0816 - Turlock, CA
Realtor - Stanislaus & Merced county Realtor.

Good advice Beth.  By keeping the buyer updated there is less chance that they will stray and go make an offer on something else too. 

May 21, 2013 08:14 AM #5
Rainmaker
3,893,169
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Those waiting for short sales to be approved should make contingency plans at the least.

May 21, 2013 09:21 PM #6
Rainmaker
1,297,924
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Kathleen, isn't that the truth?? I personally have no interest in taking on a task I don't feel comfortable with. Short Sales are a different beast and listing agents need to make sure they know enough to go forth with the transaction. We both know that doesn't always happen.

Dick, whether be buyers or sellers, it's best to educate them on the entire lengthy process from day one!

Jim, if buyers don't understand how short sales work, they will most certainly go and make offers on other properties.

Gabe, short sales are never a guarantee, the disclosures buyers have to sign are very clear, however, we as Realtors must remind them how it works along the way.

May 22, 2013 04:24 AM #7
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Rainmaker
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Beth Atalay

Cam Realty of Clermont FL
Sell or Buy Homes in Clermont FL
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