What makes an Effective Short Sale Negotiation? (Continued)
If a home is being sold for less than what is currently owed, it is considered a short sale and is subject to approval by the lender. You are a good candidate for a short sale purchase only if:
You are very patient. Even after you and the seller agree on terms, the seller’s lender (or lenders, if more than one loan on the property) has to approve the sale before you can close. When there is only one loan, a short sale can take as little as two months; more than one loan, it can take 4 months or longer for the lenders to approve the sale.
Your financing is in order. Lenders like cash offers. Even so, if a buyer is fully preapproved, has reasonable earnest money, a good down payment and can close any time, their offer will be viewed more favorably than that of a buyer whose financing is less secure.
You don’t have contingencies. If you have to sell a home before you purchase, or if you need to be in a home by a certain date, a short sale is probably not for you. Lenders like no contingencies and flexible closing terms.
If you are serious about purchasing a short sale, it is important to have expert assistance. You may wish to consult an experienced real estate attorney, a qualified real estate professional, and a financial advisor.
Here are some areas where your Group One agent will help guide you through the process: how much earnest money is needed & how is it protected; can I withdraw from the deal at any time; what is a BPO; what if there is more than one loan on the property; when do I have to get a home inspection; what if I don’t like the results of the home inspection; and how soon can I close?
Call a Group One agent today for additional information.
Note: This article provides very general information only and is not provided as advice for a specific transaction. Please consult your attorney and/or CPA as well as your trusted Group One professional.
This information courtesy of NAR: http://www.realtor.org/rmosales_and_marketing/ handoutsforcustomers/handouts/short+sales+tips+for+buyers