Buying short sales in Egg Harbor Township
It can be many things: frustrating, time consuming, discouraging and confusing. The key to the process is asking the correct questions at the outset and preparing properly. Then a Short Sale in Egg Harbor Township can become a bargain, an affordable purchase and most importantly a home for your family.
The pitfalls and stumbling blocks really jump out at an informed buyer. For example, if an offering price on the listing is too good to be true, well it probably is. It is my observation that it is possible that eager agents may attempt to drive buyer shoppers to their site by posting a price that a bank realistically will not accept.
Another landmine for buyers is the way homes are listed on the internet. An ACTIVE listing may really be “Under Contract Continue to Show.” This often means a full, legal and enforceable contract is signed. The seller could not legally sign another contract on this sale if they wanted to. I am not a lawyer and comments like this are in no way meant to be legal advice.
Want to jump into the competition? Click to check out: Active Short Sales in Egg Harbor Township
Multiple Levels of Approval
Remember, most often the servicing bank really is only the first hurdle in having a short sale approved… for example, say Wells Fargo is the point of contact. Their negotiator reviews a file and if the buyers offer is reasonably close to market value, they will accept the short sale once all other paperwork is processed and approved. The real surprise may come with the “real” owner of the property and one with the final say, “the Investor” does not agree with the number offered. The short sale is declined, possibly with a counter offer. “Investors” are all kinds of entities…. Fannie Mae, Freddie Mac, and often the most intractable the overseas accounts.
Price is NOT the Only Factor
An agent who has been in the trenches representing short sale buyers for many years can recognize when the elements of a short sale contract are coming together in a way that it makes it prudent for a buyer to hang in there. It is much more than the sales price. Here are a number of items to be considered:
- Projected Market Value of Home
- Repairs needed and general condition of home
- Outstanding association or condo fees
- Is an attorney handling the short sale for the seller…
- Number of liens
- Does seller really have a hardship
- And the list goes on…..
Avoid the nightmares and a great opportunity awaits.
Couple local nightmares
paraphrased to blur the parties identities.
- Buyer offers full asking for short sale which was around $240,000. 5+ months go by. Servicing bank counters the full asking price the listing agent had proposed with thier own idea of the appropriate price with $260,000 based on the servicing banks "appraisal" or possibly "broker price opinion (BPO). Buyer not happy with new price but agrees and addendums are signed. 2+ more months go by and “Investor” throws out the whole deal without any opportunity to keep deal alive. Buyer’s agent simply gets an email from sellers agent indicating deal is dead. Home back on market for $300,000. It is a $260,000 house with multiple repair issues. Go figure.
another horror story
- Short sale offered. Buyers agree, bank agrees… IRS does not agree. YEARS go by. Not settled yet, maybe next week. Sure.
There is some sunshine… processors are now online and documents are flying around via the internet. Secure emails protect information flow and things can be addressed quickly.
The Short Sales in Egg Harbor Township will be going away. The inventory will dwindle as banks and home owners rectify the problems that caused the mess. So this strange opportunity will be a thing of the past or a rare and unusual find.
Meanwhile click here if you would like to see the current inventory: Short Sales in Egg Harbor Township