Purchasing Foreclosures/Short Sales

Guide to Purchasing a Foreclosure/Short Sale Property

Frequently Asked Questions About Short Sales

What is a “Short Sale”?

A short sale is when there is more debt owed on the property than the property’s value. In a loan default situation (pre-foreclosure), the creditor(s) may be willing to agree to allow the property to be sold for less than the loan amount and/or accept less than (or “short”) the amount owed releasing the lien and reporting the debt as paid.

How Long Will I Have to Wait to Close on a Short Sale Home?

The answer to that depends on many factors (lender time lines, number of lenders involved, etc) so each case is different. We usually tend to tell our clients to expect at least 90 days from when our offer is submitted to the bank to actually close on the home. Therefore, if you need to get into your home in a tine specific period, please let us know. We won’t necessarily avoid showing you any short sales, but we will pre qualify the listing agent of a short sale before showing you a property to see how their time frames fit into your needs.

Can I Put Offers on Multiple Short Sale Properties?

We do not recommend it. You need to show the seller and the bank that you are a serious and committed buyer of the property. Remember, these sellers are facing foreclosure on their home and are under time limits. If you are not 100% committed to buying the home, we should step aside for someone who is committed.

Beware & Know the Difference

A short sale transaction will have some key differences compared to a "normal" residential real estate transaction. Make sure you know what you are getting into before you write an offer!

A Short Sale:

· Contract will require BOTH the seller and the seller’s lender(s) approval

· Is sold AS-IS (Seller does not agree to make any repairs)

· Can be time consuming – it can take week or months for a response from your offer

· Has no guarantee that the seller’s lender(s) will agree to your offer

· Will require a short sale addendum to be included with your offer

The Benefits of Buying a Short Sale

· Motivated Sellers

· Home may be located where you want to live

· Property disclosures available

· Most often in better condition than most bank owned properties

· You could possibly buy your dream home under market value

Are You a Good Candidate to Buy a Short Sale?

The Answer is YES!!!

If You:

· Don’t have a home to sell

· Are Willing to be patient

· Don’t need a home immediately

· Are not looking for an investment property of 1031 exchange

· Can afford to make any necessary repairs or improvements needed

· Don’t require large closing cost contributions

· Are prepared for a rejection to your offer or counter offer proposal based on seller’s lender requirements

Willing to Try?

Call us and We'll Start Looking!

360-697-9966

206-842-9966

Get Key Results Working with the Experts

If you are searching for a property in today’s real estate market, it is highly likely that you will come across listings that are “distressed properties” (ie. Short sale, bank owned, etc). It is important to understand that while there are many benefits to buying these types of homes, there are also some distinguishing qualities that may be drawbacks such as closing time-frames.

The Truth is, short sales can be very challenging transactions. If you are considering including these types of properties in your search, it is important that you work with a REALTOR who is trained specifically in working short sales. There is NO COST to you to work with someone trained in distressed properties, however, working with someone who does not have the short sale skill-set could be very costly.

Penny’s Team agents are Certified Distressed Property Experts (CDPE), with extensive training and experience supporting both buyers and sellers with short sales. It would be our pleasure to work with you to educate you to our market, find your perfect home, and follow your transaction to successful completion of your move!

Click the below link to access our brochure with all the above information regarding purchasing a foreclosure/short sale property. Please feel free to print it out and share this valuable information with all your friends and family.

CLICK HERE

If you are a Homeowner Facing Foreclosure/Short Sale

Penny McLaughlin
Penny's Team
Phone: (360) 697-9966
Phone: (206) 842-9966
Email: pennym@pennym.com

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