Short Sales- Pursue or Run?

By
Real Estate Sales Representative with RE/MAX Realty Group

One of the questions I am most often asked is about the short sale process and whether  my buyer clients should pursue them .  Short sales continue to possess a very negative connotation but they remain very opportunistic.  Here are a few points to consider when consider a short sale:

·         Can you wait the 3-6 months for lender(s) approval?  What will happen if you’re at square one if the deal doesn’t go through?  

·         Is the seller motivated or just trying to delay the foreclosure to have a place to live for free? An unmotivated seller will spell doom for any transaction.

·          Is the seller contemplating a bankruptcy? A bankruptcy filing is also a death nail for a transaction.

·         Is the listing agent experienced and/or knowledgeable about short sale process? Don’t be fooled by a CDPE or other certification (Certified Distressed Property Expert). This certification does not mean the agent has ever closed a single short sale.

·         Is your buyer’s agent committed to the transaction? Many agents don’t want to deal with short sales because of the uncertainty?

·         Who’s negotiating the sale with the lender(s)? The agent or third party?

·         Is the property an investment property or primary resident of the seller? Banks are generally more lenient on a primary residence.

·         Does the seller have any funds to contribute towards any outstanding HOA/Condo fees?

·         Has a title search been completed? You don’t want to find out after the lender approves the terms of your offer that there’s another outstanding lien (tax,mechanic,judgement).

·         Will the seller maintain the property during the process or will the property be deteriorating?

 Don’t be scared off of a short sale. They do take time and aren’t right for every buyer. If you’re up against a hard deadline to be in a place, buy a foreclosure or a regular resale. If you can find a motivated seller that has equity, you can occasionally get even a better deal. If you’re renting, buying as an investment or otherwise have the flexibility, go for it.

 

Please remember, I'm never too busy for your referrals.
 
 
 
 
Craig S. Rosenfeld
Remax Realty Group
Residential Specialist
crosenfeld@remax.net
www.craigrosenfeld.com
301-921-4519 (Direct)
301-529-0053 (cell)
888-247-5335(Toll Free)
301-258-7757(Office)

 

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Winston Heverly 03/25/2012 02:41 AM
Topic:
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Tags:
short sales
preforeclosures
reo
distressed properties
buyers
sellers
foreclosures
montgomery county
md

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Rainmaker
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Winston Heverly
Winston Realty, Inc. - Atlantis, FL
GRI, ABR, SFR, CDPE, CIAS, PA

Good luck in trying to find a property that is not a short sale down here. We are either short sale professionals or unemployed... 

Feb 13, 2012 02:52 PM #1
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