Many people think that any realtor can do a short sale. Why this maybe true, technically, it is like saying oh any doctor can amputate a limb, but if I am going to have a limb amputated I want a surgeon specializing in that area before I go under. There is a reason that only an estimated 1/3 of short sale deals get completed.
Some of the nuances of a short sale are:
1) Preparing the clients
2) The process takes 3 months or longer (the bank servicing the loan(s) of the seller first has to agree to the offer, then the investors have to agree)
3) Identifying the number of lenders (if there are more than two you are probably going to have problems)
4) Knowing if the current seller is delinquent, has received a Notice of Default, etc (if a bank has started the foreclosure process there may not be enough time to complete the short sale)
5) The property is usually going to be required to be taken "As-is" and this causes
6) The property will often have deferred maintenance so there will be additional costs
7) If the property is missing appliances such as stoves, and the buyer is going to have to get a loan from a bank, the bank often will require that there be a working stove in place before closing and if the seller doesn't have money to put in a new stove this is going to cause problems
8) Pest reports, if pests are found and the buyer is getting a loan, the Bank will usually require that the pest damage be remedied before closure and the seller will often times not have the money to do so
9) Inspections need to be more careful than usual as all the maintenance costs and repair costs will be born by the new buyers
10) Delinquencies in HOA dues are often a problem and sometimes the buyer may have to pay them off
These are just some of the challenges of a short sale transaction. I can tell you from experience that these challenges can be overcome and result in some great deals for buyers. I have had clients receive properties which have appraised $50,000 to $100,000 higher than the prices they paid. After having done some short sales I can tell you that they are anything from a typical real estate transaction and if you want to have a successful short sale, I would definitely only use a realtor who has at least some experience with short sales.
Some of the nuances of a short sale are:
1) Preparing the clients
2) The process takes 3 months or longer (the bank servicing the loan(s) of the seller first has to agree to the offer, then the investors have to agree)
3) Identifying the number of lenders (if there are more than two you are probably going to have problems)
4) Knowing if the current seller is delinquent, has received a Notice of Default, etc (if a bank has started the foreclosure process there may not be enough time to complete the short sale)
5) The property is usually going to be required to be taken "As-is" and this causes
6) The property will often have deferred maintenance so there will be additional costs
7) If the property is missing appliances such as stoves, and the buyer is going to have to get a loan from a bank, the bank often will require that there be a working stove in place before closing and if the seller doesn't have money to put in a new stove this is going to cause problems
8) Pest reports, if pests are found and the buyer is getting a loan, the Bank will usually require that the pest damage be remedied before closure and the seller will often times not have the money to do so
9) Inspections need to be more careful than usual as all the maintenance costs and repair costs will be born by the new buyers
10) Delinquencies in HOA dues are often a problem and sometimes the buyer may have to pay them off
These are just some of the challenges of a short sale transaction. I can tell you from experience that these challenges can be overcome and result in some great deals for buyers. I have had clients receive properties which have appraised $50,000 to $100,000 higher than the prices they paid. After having done some short sales I can tell you that they are anything from a typical real estate transaction and if you want to have a successful short sale, I would definitely only use a realtor who has at least some experience with short sales.
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