“Can I get a great deal on a Short Sale?”
That’s a question I hear from buyers almost every day
Great question…The answer depends on your needs as a buyer
Over the past two years I’ve helped buyers on LOTS of Short Sales…and learned a few things that make it easier for you to decide if this process is for you.
If you can answer yes to these statements you’re a buyer that should consider Short Sales:
- I have no definite time frame to complete the purchase, I can wait as long as it takes
- I have cash reserves I can use if needed to complete the sale
- I’m targeting a specific location, and will do whatever it takes to be there
- I have flexible financing and can close escrow within a few days if needed
That sounds pretty tough doesn’t it? But, you want me to tell you the truth!
Here is what Buyers need to know about Short Sales:
- Most of these loans were 100% financing with a combination of an 80% first loan and a 20% second loan …known as 80/20 loans
- This entire process is driven by the investors that hold the loans
- It’s all about the money…lenders know EXACTLY what these homes are worth…they’re not giving anything away
- The first lender is the easy one to deal with…the second lender makes or breaks these deals
- There is absolutely no standardization…each lender does it their own way
- Most of the time it takes about four months before you have an approval for the sale
- Second lenders have insurance on their loan, many get more from a foreclosure
- Preparation and follow-up by the listing agent is key to completing these sales
- Be prepared to wait four months for approval then have only 21 days to close
- Be prepared for the lender to come back to you a day before closing and ask for more money or the deal is off
- No matter how good the sale looks it’s not over until you get the keys in your hand
With all of this cheery news about Short Sales why would anyone go through the hassle?
Right now competition is tough for REO homes…short sales CAN offer a good alternative…if you know what you are doing!
Here are a few of the insider tactics I’ve learned that make it a lot easier for buyers:
- Many sellers don’t keep track of the buyer…when they finally get an approval the first buyer is gone and they’re ready for you to step in without the long wait
- If we pre-screen listing agents and check facts we can eliminate sales that just won’t close
- Persistence pays off…if we stay in touch with the listing agent more sales close
If you still think Short Sales are interesting, and you want to lean more, please Contact Me…we can set up a time to sit down together and I’ll give you more in-depth information about the homes that are available…and a few more strategies that can help you get the home you want!