The 1st misconception that I want to make clear about purchasing a Short Sale home is that YOU ARE NOT necessarily getting a great bargain. You are only buying the home for less than what the current owner owes on their mortgage, and in these days & times where people owe almost double the current value on their homes, that means nothing. SO DO NOT think that just because you're buying a Short Sale you're getting the best deal.
Strongly urge the buyer to not invest any money into the property until the bank approves the Short Sale.
Don't lock in mortgage rates as they may expire costing the buyer money.
A specific timeframe for Short Sales cannot be determined nor guaranteed.
Be patient! Short Sales can be a very long process.
The listing (seller's) agent SHOULD provide the selling (buyer's) agent with weekly calls/texts/emails with updates so they can keep the buyer informed, but this doesn't always happen and your (buyer's) agent has little control over this matter.
MOST Short Sales turn around approvals within 60-150 days.
If the buyer has a situation where they don't have time to sit and wait (with the possibility of still getting a NO from the bank & having to start the home search all over again) then maybe skipping Short Sales altogether would be a better decision for you.
The Short Sales contract is a legally binding contract as with a traditional home purchase.
DO NOT try to purchase a Short Sale on your own without the help of a licensed real estate agent.
In a Short Sale the home IS still owned by the homeowner (not the bank).
The homeowner will sign the contract and the contract will become binding subject to the bank's approval of terms.
Strongly urge the buyer to not invest any money into the property until the bank approves the Short Sale.
Don't lock in mortgage rates as they may expire costing the buyer money.
A specific timeframe for Short Sales cannot be determined nor guaranteed.
Be patient! Short Sales can be a very long process.
The listing (seller's) agent SHOULD provide the selling (buyer's) agent with weekly calls/texts/emails with updates so they can keep the buyer informed, but this doesn't always happen and your (buyer's) agent has little control over this matter.
MOST Short Sales turn around approvals within 60-150 days.
If the buyer has a situation where they don't have time to sit and wait (with the possibility of still getting a NO from the bank & having to start the home search all over again) then maybe skipping Short Sales altogether would be a better decision for you.
The Short Sales contract is a legally binding contract as with a traditional home purchase.
DO NOT try to purchase a Short Sale on your own without the help of a licensed real estate agent.
In a Short Sale the home IS still owned by the homeowner (not the bank).
The homeowner will sign the contract and the contract will become binding subject to the bank's approval of terms.
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