805 Local

SEVEN SECRETS —what you need to know before putting an offer on a short sale:

1. Length of time to get an answer.  It could take anywhere from two weeks (doubtful) to well over two months (more likely) to get any type of response from the lender.  If there are two loans on the property, it could even take longer.
2. Qualifications.  Not your qualifications as the buyer but whether or not the seller qualifies for a short sale.  If you get involved in a short sale where the seller does not qualify, you could waste months and be back to square one.
3. Lose control of the transaction.  A short sale closing can take an indefinite amount of time.  It is the seller’s lender that will call the shots.  If you are trying to close concurrently with another house, it will probably never happen.
4. Homes sell at market value.  Lenders do their homework and get appraisals on the property before agreeing to a short sale.  If the lender believes a better price can be obtained by taking the property back in foreclosure over a short sale, the lender may hold out for a higher price and the short sale not be approved.
5. “As-is” home sales.  If a lender does agree to the short sale, typically the lender does not pay for repairs, pest inspections, home protection plans, deferred maintenance, etc.
6. Little seller motivation.  The seller is not getting any money from the sale; they are losing a place to live.  The seller can make it difficult to see the property as well as do inspections, etc.
7. Lenders can change conditions.  Some lenders reserve the right to renegotiate the terms of the short sale.  It is not over until ‘the fat lady signs’ and escrow is closed.  

Here’s a brief video about Short Sales.

Do you have more questions about short sales? Would you like a current information regarding short sale properties within Ventura County?  Let us know.  Greg Ricci at (805) 340-5811 or email at Greg@805Local.com