Short Sales – Are they worth it?
If you are a buyer looking for a new home one of the options you will see out there are short sales. Sometimes these can look like a really good deal. Short sales are rarely “short” and are usually a very long process.
There are many more hoops to jump through when you are buying a Short Sale home. In a short sale the Bank or Banks involved must approve the sale before you can close. This takes many more pages of paperwork. The bank will assess the property to decide if it is in the bank’s best interest to sell the home as a short sale. The seller also has to prove to the bank that they cannot stay in the house or afford the mortgage any longer.
Banks will often wait to begin processing the sale until every document is signed and received at their office. If you are thinking about purchasing a short sale, make sure you sign everything and get it to your agent as quickly as possible. Every day the papers are in your hands is a day the banks can’t be processing your sale. Make sure you ask how many loans the seller has on the property. A short sale with one loan is complicated enough; with two it just doubles the amount of time.
So you still want to buy a short sale? Make sure your agent has short sale experience. A knowledgeable agent can keep the process moving and navigate your sale through the complicated system. Expect a long drawn out process. It can take an experienced agent several months to close a short sale. If you are in a hurry to move into a new home, a short sale is not right for you.