Often when I consult with clients who wish to purchase real estate, we are able to find great looking homes and attractive prices. Frequently these homes are either short sales or real estate owned (REO) sales. These two types of sales are quite different from one another:
The issue with a short sale is that Realtors, sellers and banks aren’t the deciding factors in the process — the mortgage investor is ultimately the one in charge. As a result, unless a buyer or seller is extremely well-versed in the ways of short sale transactions, mounting frustrations are to be expected. And unless the bank has an actual process in place, timelines can vary wildly.
PATIENCE is key.
Over the years I’ve found that when people want something, they want it! However, in a short sale transaction, there is nothing that the buyer can do to speed up the process aside from waiting and being ready once the terms have been approved.
If you are interested in buying a short sale property, the one thing you can do is ask your Realtor to reassure the listing side that this is the home you want. Demand that your Realtor has open lines of communication with the listing Realtor to make the transaction smoother. Remember that although you may be waiting for months in order to get some word from the bank(s) regarding their decision to allow you to purchase this property, it is still not guaranteed that the property can or will be sold to you. There have been cases where the bank(s) defeat the seller, and the seller gives up and allows foreclosure. Others where the buyer gets so impatient, they pull out right when the bank finally agrees to ink the deal.
Although patience isn’t always easy to come by, short sales can happen! Your representation should be able to guide you away from the pitfalls of short sales. To buy or not to buy a short sale? Remember the great part of being a home seeker is that you have choices.