Short Sale Buyers Info & Processing
Finding a buyer for a short sale property can be frustrating because the process is oftentimes lengthy. Buyers have expectations on how long it will take them to close on a property, and short sales can take a considerably long amount of time to close because of the process. Buyers like the fact that short sale properties are often viewed as bargains, but the amount of time it takes to actually complete a short sale can be discouraging. Following are some reasons that short sales often take longer than actually necessary.
What A Buyer Should Know About A Short Sale
A short sale buyer should be able to answer each question below with a “Yes” before submitting approval for a short sale:”Is
The buyer’s and the seller’s agent should both be accurate sources of information on short sales. You will likely have numerous questions about the process and you want to be sure you are given accurate and informative answers. Short sale real estate agents should have a firm grasp on the process and how to ensure success. This type of knowledge can only come with extensive experience.
The listing agent is the main point of contact for the transaction, and his or her short sale experience is the best indication for whether or not the short sale will be successful. The listing agent will negotiate with the lender(s) and will be involved throughout the whole transaction.
As a short sale purchaser, you must work with a short sale specialist that will do anything and everything to make the deal successful.
The number of loans involved in a short sale will impact the transaction’s success rate. As a rule, one loan on a property increases the likelihood of short sale success and decrease potential time delays.
Mortgage insurance agencies can serve as a bump in the road in most cases. Assuming the loan is VA or FHA, the short sale procedure is similar to that of a customary setting. Knowing the different obstacles and roadblocks ahead of time is fundamental for all people included in the transaction.
The short sale industry has seen its ups and downs, and despite President Obama’s pledge to make the procedure simpler, the short sale process is still complex. The complexities involved in a short sale are cause of the lengthy process. Short sale approval sometimes takes months. Understanding how the process works will help you create a realistic timeline.
Very frequently, short sale agents with insignificant experience will value the property far too low and the lender is almost always going to reject such outrageously low offers. When a deal looks too good to be true, it usually is – and buyers must be aware of this.
It can take lenders weeks or months to reject low-ball offers, which wastes both the buyers’ and the sellers’ time. This can also push the homeowners one step closer to ultimate foreclosure.
The end goal is to process and successfully complete a short sale. You must be aware of specific expenses that are permitted and which are prohibited. For instance, knowing the maximum contribution permitted by the seller is essential. Most servicers and mortgage investors will not permit more than three percent in seller contribution. With an FHA short sale, the seller contribution might be as low as one percent regardless of the final purchase price.
Need More Answers Regarding Short Sale Buyers Info?
Jeff Corporon, Brix Real Estate, LLC
1315 S Clayton Street, Ste #200, Denver, CO 80210
Cell: (303) 475-1276 | Fax: (303) 496-0534