Short Sales In Big Bear Lake, CA

 Originaly Posted On www.tonycard.com

There has been a considerable amount of discussion in my office lately about the Short Sale process.   Many agents state that they hate Short Sales and they do their best to stay away from them.  With the Federal Government's plan to try and help homeowners stay out of foreclosure, the number of Short Sales is only going to increase. 

So, let's take a look at some of the more common issues that arise out of a Short Sale.

•1.       Who accepts the offer that I have made on a Short Sale property, the homeowner or the bank?

The thing to keep in mind is that you are negotiating with the homeowner and not the bank.  If the homeowner accepts your offer, you have a deal and it's time to open escrow.

•2.       Once the homeowner accepts my offer, when will the escrow open?

Unless you, the buyer and the seller have agreed to other terms, according to the Residential Purchase Contract, escrow should open within 72 hours.

•3.       Is the offer contingent on bank approval? What happens if the bank doesn't approve the price?

The offer on a short sale property is contingent on the banks approval of the price.  If the bank doesn't approve the price, then the escrow cancels and you walk away and your deposit is returned to you.  One of the things I learned early on with the Short sales that I've done in Big Bear is that if the bank accepts the price, then they will want to close as soon as possible.

•4.       How long does it take to get bank approval on a Short Sale?

Every sale is different and so are the banks that hold the mortgages.  There are a number of questions that your buyer's agent needs to be asking before the offer is written.  Questions like, has the seller submitted his Short Sale package to the bank?  Has the third party authorization been submitted?  Without this document, the seller's agent can't speak to the bank regarding the Short Sale.   Is the seller's bank open to a Short Sale?  Does the listing agent have comparable sales to support the asking price?  Depending on the how these questions are answered will have a lot to do with how long it is going to take for the bank to get back to you on the Short Sale.  In my experience in selling Short Sales in Big Bear, I've seen banks approve the Short sale in 7 days. I have also seen them take 6 weeks to approve.

•5.       How long after the bank approval of my Short Sale offer will the escrow close?

Every bank is different but my experience has been that once the bank gives you written approval of the Short Sale, they want it closed as soon as possible.  The last Short Sale that I closed was in Sugarloaf and the bank gave the buyer 21 days from the date the bank accepted the price to close the escrow.  It isn't going to matter whether you're in Big Bear or Los Angeles.  The bank is going to want the escrow closed as soon as they can get it closed.

•6.       Should I do my inspections and get my loan ready before the bank approves the Short sale price?

Whenever I write an offer on a Short Sale in Big Bear, I use the Short Sale addendum. This is one of many forms available to us through the California Association of Realtors.  This addendum provides the buyer the opportunity to not have to start the inspections until the bank has accepted the price in writing.  If the Realtor doesn't use the Short Sale Addendum, then you as the buyer have 17 days from date of acceptance from the seller to do his inspections and get the loan in place. 

•7.       Will I be reimbursed for the home inspection and loan fees if the bank doesn't accept my offer?

The answer is NO.  This is one of the risks that you as a buyer will take if you are looking to take advantage of a distress sale.  This is another reason why you need to make sure that you are working with an experienced Short Sale Realtor. 

•8.       Why use a Realtor?  Why don't I negotiate on my own with the seller?

Not only do you want to use a Realtor, but you need to make sure that you're working with a Realtor who has a lot of experience in Short Sales.  By making sure that you have the right Realtor working for you, you are going to improve the chances of your Short Sale being approved.  By using an experienced Short Sale realtor, you will get a better idea from your Realtor if the home being offered as a short sale even has a chance of closing.

I am a short sale specialist in the Big Bear Lake, CA.  If you're a buyer looking for deal on a short sale in the Big Bear valley, hit me up.  I am available any time at the office, 909 866 3481 or by cell 909 436-8043.  My email is tony@ tonycard.com.   If you are a buyer who finds himself in a position where you're behind and don't know what to do, get in touch with me so we can discuss your options to a foreclosure.