Tips for Successful Short Sales
Posted Wednesday, February 5, 2014
The reality of today’s real estate market means that there are many opportunities to purchase short sales. While the process can still be confusing, it is increasingly common. Here are a few tips on how to make sure you leap through the extra hoops a short sale requires with ease and grace:
- Avoid short sales with multiple mortgage lenders: Offers on short sales with two different lenders are at a much higher risk of being declined. The first mortgage lender will likely only allow a small percentage to go to the holder of the second mortgage – who will therefore be likely to veto a deal, on the hope that more funds would be generated in a foreclosure.
- Check the Real Estate Agent’s Short Sale Track Record: Agents with experience in short sales are much more likely to be able to successfully navigate the system than those new to the vagaries of short sales.
- Make Reasonable Offers: Short sales can be better deals, but they are unlikely to be magically cheap. No matter what, the bank isn’t going to give the home away just to avoid foreclosure. You want to put together an offer that makes the buyer and the bank happy.
- Follow Up on the Details: With the bank involvement, there will be more negotiation and more detail. Keep your i’s dotted and t’s crossed to make sure the process doesn’t stall.
- Allow For Extra Time: Short sales are not a short process, so if you are truly in a hurry to close a deal, consider other options.
If you’re looking for a real estate agent with experience in short sales, give me a call. I can help you navigate the system and close on your new home.