“Is this a short sale?”
I can’t tell you how many agents are asking me that question on my regular listings here in Salem Oregon. I really want to scream…NOT ALL HOMES FOR SALE ARE DISTRESSED. In fact here in Salem Oregon only a small percentage are short sale or foreclosure attempts. MOST are regular old home sales…
Unfortunately with short sales inundating the media every day, I can understand that people might think every piece of real estate is in distress. So…if you are one of those buyers that thinks a short sale purchase is the way to get a “good deal on a home” here is what you need to know.
- You need to have the right temperament to attempt a short sale. If you are an impatient person…this is not the type of purchase for you. Folks that get anxious easily, should avoid short sales like the plague. Short sales can take as short as 45 days, or as long as 11 months to get done. Yeah…you heard that 11 month comment right. SHORT SALES ARE NOT FOR THE WEARY. Be prepared.
- This is not like negotiating on a regular house. The lender is agreeing to take a LOSS on the home so they don’t care about the squeaky hinge on the door, or the windows with the broken seals. These homes are “as-is” homes. Now that doesn’t mean you can’t do a home inspection and walk away if you don’t like what it says, but you WILL NOT be negotiating repairs on these puppies.
- For you impatient sorts, no…you can’t talk to the bank “to find out what’s going on.” The seller is the LEGAL owner of the property and the bank is NOT ALLOWED to discuss private financial matters with you. The listing agent will have a signed release FROM THE SELLER that allows them to talk to the bank. You do not have that release, so don’t waste your time, or the loss mitigators time by harassing them.
- The sellers are still required to have a clear title to the property. Back taxes, etc are all taken into account during the short sale.
- Ssshhh..don’t tell anyone, but the lender may turn your offer down. Many short sale offers are horrible and not worth considering. Some short sale offers are great, and the lender turns down a really good offer. It is the way it is. You have to learn to accept these things and move on. If you are the type of person that needs everything to be rational, don’t try a short sale.
- Not all short sale attempts are legitimate. Some short sale attempts are not “real” in the sense that the seller actually has money to pay off the loss, they just don’t want to. Just because it says short sale, does not mean that it is a “real” short sale. Be warned.
Not all short sales are screaming deals. Good deals…yes…So you need to decide if you have the right temperament to survive the short sale process. Believe me…they are not for everyone.
If you want to get on my list of bank owned and short sale homes on the MLS. Just email me at firstname.lastname@example.org.