Steps To Buying A Short Sale
(and is it worth it)
Buying a short sale can be mind numbing, frustrating and disappointing (after months of jumping through hoops you may not even get the property) so why should you consider it? $$$. You could get the property for a substantial discount. The lender is interested in being paid back the money it loaned out and there are government incentives to the bank to make a short sale work.
Since the seller is involved in a short sale process, they will cooperate, keep the house in the same shape it was when you first viewed it and, hopefully, move out when escrow closes. So that is the why, now for the HOW.
1.) Have your financing in order. Don’t wait until the lender accepts your offer to start looking for your loan. Many times you will have as little as 15 days to close after the bank’s acceptance.
2.) Search For Short Sale Listings – then contact me with questions or to view potential purchases.
3.) View the property to determine if it is the right home for you, if it needs any work and if you like the area.
4.) Research the property: What are the comps, crime rate, schools etc. This is also a good time to do a physical inspection. The down side of this is that if the bank doesn’t accept your offer you will be out about $600 but on the other hand once the bank sets a price they usually won’t do any repairs, so it is better to know in advance what is needed so you can include any repairs in your offer.
5.) Write the offer. The offer first will be accepted by the seller but that is only the first step because it then has to go to the lender and that is when the waiting begins.
6.) WAIT
7.) Call me to ask what the heck is going on and why is it taking so long. I will tell you that it is out of our hands and to be patient.
8.) Sign any counters that the bank may send out and wait.
9.) Sign a ton of paperwork, including your loan docs.
10.) Close escrow