Short Sales: Buyers
Homebuyers looking to get a great deal on a Short Sale Listing need to know and follow a few rules in order for their offer to be really considered at the Short Sale lender level. Probably the most taxing job for the Realtors and attorneys on a Short Sale deal is educating the buyer as to the appropriate expectations of what is to come when the offer is submitted to the lender for approval.
For starters, the buyer needs to understand the Short Sale lender will not, under any circumstance, care what the buyer's timeline for closing might be. Lenders are overwhelmed by the sheer numbers of Short Sales being sent in to them for consideration and there just is not enough labor to go around. Furthermore, I find that buyers often are very disappointed when they submit (usually a fairly low offer) and then expect the lender to respond within a few days!! Crazy thinking on behalf of the buyer! It may be a month or two before the listing side of the transaction can even get far enough through the process to even get to someone in Loss Mitigation Dept. that can shed some light on the file. Buyers have to understand there are NO fast answers on short sale files. Just the way it is.
As a buyer (and for buyer Agents out there) if you want your offer to have the best chance for the fastest approvals (I did not say fast!), then follow these rules:
•· Do not make offers that are ridiculously low priced, it can be low but get real with the numbers
•· Do not include home sale or closing contingencies (lenders are not interested in approving a short sale to have the buyer not qualify)
•· Make sure your buyer's Agent provides a very strong lender approval letter with figures that match your offer
•· Do not ask the lender to provide surveys, home warranties, etc for the buyer's benefit (not going to get approved)
•· Make sure you are taking the house "AS-IS" as the lender typically will not make any repairs and the seller is prohibited as well
•· Include closing cost credits if necessary as usually the lender will approve some of those
•· Make sure you have a flexible agenda so you can close within 30 days after getting an official approval letter from the lender
In summary, the key is to make reasonable offers (relative to true market value), organize your offer so it all hangs together, don't ask for anything from the lender that is solely for the buyer's benefit, and set your timing expectations realistic to allow enough time for the Short Sale lender to approve the file. We have gotten numerous approvals for our Short Sale sellers and produced some very excellent ‘deals' for many buyers. Remember, Short Sales can be great deals but you as the buyer ‘earn' then by following the above guidelines and being patient.
Here at Gryphon Properties and Management Co. we specialize in working directly with Short Sale sellers, and with Agents who need our help and expertise in negotiating files with the lenders. Subscribe to our Business Page on Facebook here: http://www.facebook.com/#!/pages/Saint-Charles-IL/Steven-Senters-Short-Sale-Senter/342628328132?ref=ts Or give us a call at 630-513-3906! We are here to help!