Twila E. Palmer's Blog
You may think buying a short sale is a good deal and many times it can be a good option. Short sales can also be fraught with complications and often can easily fall apart. Here is a list of things to be aware of so your short sale doesn't become a long shot. • When a house is placed for sale as a short sale the owner doesn't always have the authority to sell the house at the advertised price. The owner hopes the bank will accept that price as a short sale. • The negotiating process is far different than a regular sale. You often will first negotiate with a seller but remember the bank has the final say-so. • You are making an offer to purchase blind because many lenders will not even discuss a short sale with a seller until a purchase contract is in place. There is no guarantee the lender will even accept a short-sale offer. • Short sales often are not short at all. They can be long, drawn-out affairs. Be prepared for it to take months. • Even though the lender may have taken their time on the short sale approval, once approved the lender often require the sale to close within a short period of time. Due to the way many short sales happen, a buyer may have to put out money for a home inspection, appraisal, credit report and application fees paid to their lender and the sale may not even happen. So while short sales can often be a good deal they can also be a long shot. Take your time, do your research and be sure to work with a real estate professional to help guide you through the potential pitfalls of a short sale.