| Across many parts of the United States short sale | | | | short sales closed. The process is time consuming and |
| properties have become the norm. Banks agree to do | | | | can be frustrating for most people, which is why a |
| short sales when the homeowner owes more then | | | | very experienced short sale agent or negotiator is so |
| the current value of the property. Most times the | | | | important. It takes more then just sending in paperwork |
| homeowners can no longer afford the payments and | | | | and waiting for an answer. Most banks will let you |
| the property will be lost in foreclosure if it's not sold. | | | | know, usually after months of waiting, if your offer is in |
| A year or two ago the banks were scrambling to try | | | | their guidelines. That information will come out after it |
| to figure out what to do with these offers and how to | | | | has gone through most of the process. Some banks |
| handle a short sale. Now they have huge departments | | | | are now doing a mini evaluation of the offer early on if |
| in multiple states that do nothing but handle these all | | | | they have a current appraisal or broker price opinion |
| day long. And many banks are overwhelmed with the | | | | on file. With the changing market an appraisal that is 4 |
| flood of offers they are being sent. The volume of | | | | or 5 months old probably doesn't reflect the current |
| paperwork alone sitting on the processors desks is | | | | market and a good negotiator, working for you,will |
| enough to clear several forests! | | | | know that. |
| Most banks have their own process for short sales. | | | | Investors who are willing to tough it out usually end up |
| This process must be followed if you are to stand a | | | | with a good deal. Most will be buying with cash which |
| chance on getting the deal closed. Even when you | | | | is a big plus for the homeowner since mortgages are |
| have completed everything they require, it can still take | | | | much tougher to get then a couple years ago. There |
| from 3 to 9 months to get a deal fully approved. | | | | aren't all that many investors in the market for short |
| For those who are patient that can be a big payoff. | | | | sales. Most investors can buy and sell several REO |
| On the other hand, with the market continuing to | | | | (bank owned) homes in the space of time it takes to |
| decline in some areas, it can end up being no better | | | | get one home through the short sale process. Like any |
| then buying a home at current market value. Due to | | | | other deal they have to go in with the right offer to |
| the lengthy process a majority of the time it's not the | | | | make it worth while. |
| first offer that closes the deal. It's actually more like the | | | | So if you want to invest in a short sale deal go for it. |
| 3rd or sometimes even the 4th buyer that will end up | | | | Just remember you need to be willing to wait several |
| with the house. | | | | months in most cases before you'll know if it's going to |
| Part of the process can be helped along by using | | | | be accepted by the bank. The process always |
| someone that has a lot of experience with getting | | | | happens in the banks time frame not the buyers. |