Does Your Buyer Agent Understand Short Sales??
This is good advice on Short Sales from a good agent I know in the area. Short Sales get some buyers pretty excited, but there are a few things every buyer needs to know. Great job on the post Shar, and thanks for letting us share it!
If you'd like to purchase a Short Sale in today's market, it is imperative that you make sure your buyer agent understands the Short Sale process.
Before you preview Short Sale listings here are a few things that your agent needs to share:
1) Short Sales houses are sold 'as is'...no one is going to make repairs before you close the transaction....so if you are a FHA or VA loan candidate, be sure that the house is not is such disrepair that it will not make it through the FHA or VA process. Some conventional lenders may also require repairs.
2) A Short Sale is going to take a lot of time....it is not a 'short' sale in terms of time...many Short Sales will go beyond 120 days...some less...many more than that!!! If you are not willing to wait for bank approval, don't begin the process!
3) There may be fees that the bank will not pay....delinquent Homeowner Association Fees, recording fees, tax prorates and judgments and liens on the property. Each Short Sale is approved based on what is owed on that property alone...including additional lienholders.
4) The bank 'may' pay some buyer closing costs and pre-paids...but they probably not pay ALL of the required closing costs. Be sure you have what is needed...and where it is..cash in the bank, a loan from a 401-k or a gift from a family member...just be sure that you know where ALL of the closing costs and pre-paid expenses are coming from... cash in a sock won't work.
5) Your offer needs to be one that the bank will approve...ridiculously low offers are a waste of your time as well as the Seller...it may harm the Seller's chance of avoiding foreclosure, as it eats up the time prior to the foreclosure sale.
These are just a few of the short sale facts that yout buyer agent needs to share with you...if your agent does not understand Short Sales, then find someone who does....many agents have completed designations, like CDPE (Certified Distressed Property Expert).
BE SURE YOU ARE GETTING THE ASSISTANCE YOU DESERVE WHEN MAKING A PURCHASE IN TODAY'S MARKET!!
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