Short Sale Information for Buyers
Buyer Short Sale Information.......
Why would you buy a short sale?
Of course, the answer is easy.....price and property condition! Most owners are typically trying to sell these homes because they are "upside down".....they owe more on the house than it is worth. This means potential buyers will have to negotiate a deal with the lender.
Why would a lender accept a short sale?
Many lenders are tired of taking back trashed homes and would rather approve a short sale instead. So basically, in most instances, a short sale is less expensive than the foreclosure process. The seller is usually still living in the property and that means utilities are still on; lawn is being mowed and carpets being cleaned. You are able to check that the plumbing is still working; the air conditioner and heat is in working order, etc. The seller is obviously in a tough financial situation and if the home needs work or repairs the seller might not have the funds to do the work. The home is sold "as is". However, the buyer can save many thousands of dollars on a short sale!
But, are you patient?
If you need to close by a certain date then the short sale may not be the right option for you. Banks are overwhelmed with short sales and foreclosures so the process is slow and complicated. Often the negotiator has a hundred files he or she is responsible for on any given day. The responses are slow and often irritates the prospective buyer who is accustomed to "quick responses".....so .....somewhat in a way to retaliate, we have seen over and over the buyer wait with their response. Not a good idea.....keep in mind this is not a normal seller....we are dealing with a person who gets paid from 8:00 to 5:00....it does not matter to them if this transaction takes place or not! Please try to keep that in mind when we ask to respond quickly! It can take anywhere from 3 - 6 months to close. It will take a skilled and seasoned agent to negotiate all the pitfalls of the short sale but it is creating a window of opportunity like never before! These deals will not be around forever.....now is the time to buy!
Disclaimer: This is not intended to provide legal service. We recommend that you speak to your attorney and your tax accountant regarding specifics to find out if this is the best option for you.
