Short Sales...Why Do They Take So Long??

Is this what you feel like when trying to deal with short sales or foreclosures?  They can be frustrating but the balance of how much you can typically get off the price for a home and the amount of time you wait is worth it most of the time.

Items that can make the process seem like it is taking a long time is the submission process for the listing agent.  They have to gather a lot of information in a short period of time and submit the entire packet in full before the bank will even look at the offer that was submitted.

A buyer must understand that just because the seller of the home accepted their offer, doesn't mean the bank will accept the terms and price of the offer.  They will most likely be renegotiated.  Everything from the bank will also be verbal.  No offers are final unless they are in writing!!  Don't believe that you have an accepted offer until you have the banks signature.

There are a couple of items to consider when looking to purchase a short sale.  Here are a list of 7 questions that you should ask to your agent or the listing agent:

1. How many offers are being “pended?” Would you get the buyer involved if there were 10 offers already being “pended?” It’s up to the buyer.

2. How long has the property been on the market?

3. How many short sale transactions has the Listing Agent completed?

4. What is the average price of the last five traditional listings that have sold in the marketing area?  Why put a buyer through the process of buying a Short Sale property when you could find another property at the same relative price that is a traditional listing?  One of the main attractions of a Short Sale property is the PRICE!

5. How many payments has the seller missed? It takes time to complete these sales, and foreclosure could take place prior to a short sale transaction being settled. It’s important to know how long it takes for a property to be foreclosed on from the time of the first missed payment until the “foreclosure sale.”

6. How many second or “junior mortgages” or liens are on the property? Junior mortgages can be a real deal killer.

7. What’s the contact number for a Home Inspector who can inspect the home on a short notice?

Thank you to Leroy Houser for most of this information!  He is the leading CRS instructor on short sales and foreclosures.

Happy shopping and let me know if you have any further questions about short sales!