Searching for that perfect Short Sale or Foreclosure Deal ?
Here is how to be most effective in your search.
Getting pre-approved.Tell your lender that you are looking at Short Sales and Foreclosures. Insure that your lender is able to facilitate all types of loans.( We are seeing the loan program being dictated a bit based on facts about the property. IE, Home path, FHA 203 K, Renovation Loan, etc.)
Insure that the expiration of your Pre- Approval is as far into the future as possible. Discuss rate lock openly with your lender and formulate a plan. USE A LOCAL LENDER PLEASE!
Hire an EXPERIENCED Buyers Agent- Create a time line unique to your situation with your agent. The inventory is very low, and most short sale foreclosures are priced to move. Therefore poorly marketed. Your agent is able to set up searches for homes that match your criteria, and can specify and pull out the privately owned, short sales and foreclosures. You will need a buyers agent mining the MLS for you so you can be the early bird. Plain and Simple. If the home is priced at the market value.(Quick Analysis Provided by Agent helps here...) then Go Big or Go Home...Likely you will be competing for these homes that are priced with the market. Do not wait to drive by as soon as the listing hits the email.If the location works, CALL YOUR AGENT and have them meet you there as soon as possible. Be prepared to Draft an Offer to Purchase IMMEDIATELY. Your Buyers agent will need your Pre Approval Certificate, Current Address, Full Legal Names. You will need. Your CHECKBOOK and a PEN! Being prompt, prepared and organized is how this is done. Otherwise you will constantly be outbid by other purchasers doing exactly what you are doing. Remember, drafting a Purchase Offer Does NOT obligate you to purchase the property, review your contract and discuss what Drafting an Offer truly is......... your intentions in writing. Michigan allows no verbal agreements from the Purchaser.
The Short Sale Search is a hurry up to wait procedure, the Short Sale transaction will become more commonplace in our market, and we all hope more simplified as time goes by.... in our climate it is a releif to know the property is being occupied, and hopefully more reasonably tended to. Short Sales just require patience. If you are patient, are not working with a housing deadline.. Don't pass these opportunities by. They can be a "Win Win Situation" for both Buyer and Seller.
Stay Tuned for Part 2 of this Short Sale/Foreclosure Series
"Drafting and Offer to Purchase" that gets accepted...........