Why Do Central Connecticut Short Sales Take so Long? Part 2

Why Do Central Connecticut Short Sales Take so Long?  Part 2

Part 1 of this series set out part of the work done to determine viability of applying for a short sale. This post will describe what happens once an offer is received.

 Once the preliminary work has been completed and the financials of the seller have been forwarded to their lender (s), the house is ready to list. The process is no different than any other listing in that the presentation of the home needs to have the necessary visuals to attract an Internet consumer. To the extent possible, the house needs to be cleaned, photos taken and if it’s within the financial capabilities of the sellers any repairs needed to be done, addressed. The objective is still to get a buyer to want the house and to see the value of submitting an offer.

The marketing of the home should not attempt to hide the reality of it being a short sale. In the Connecticut MLS system it is identified as such when loading the listing into the system. For buyer’s agents, it should be noted within the remarks of the MLS that documents have been submitted to the bank, and if a Bank Cooperative short sale, identified that way as well. Disclosure of the nature and status of the listing goes a long way to getting a buyer and their agent through the door.

The buyer’s offer to purchase needs to be addressed to the sellers, as they still own the home and the buyer’s proof of ability to purchase documented as well. If purchasing for cash, this needs to be on a bank letterhead with the names of the buyer (s) clearly identified and the amount of deposits noted. The contract must also state the contingency that the purchase is subject to short sale acceptance.

The seller and their agent review the offer and if the value is within range of fair market value, and there are no additional contingencies such as a sale of the buyer’s current residence, it can be submitted to the bank along with the necessary documents from the sellers.

While the bank is reviewing the contract to purchase and the final documents, the buyer should take advantage of this time to get their inspections done. This is significantly important as there is very little probability, if any, of having repairs done or adjustments made to the contract price for something that may come up during inspection. The buyer should know exactly what they are buying and if they encounter something during this evaluation period that is when they need to exit the deal. If the home has been vacated by the sellers and utilities have been disconnected, it would most likely be the buyer’s responsibility to have them reconnected for inspections and anything else that might need to be done for their mortgage process. The seller has the financial hardship and may not have the funds to make repairs or to have the house accessible and powered for inspections. The bank won’t do it as they do not own the home.

Other posts in this series:

Why Do Central Connecticut Short Sales Take so Long?  Part 1
Why Do Central Connecticut Short Sales Take so Long?  Part 2
Why do Central Connecticut Short Sales Take so Long?   Part 3
Why do Central Connecticut short Sales Take so Long?   Part 4

Why Do Central Connecticut Short Sales Take so Long?  Part 2