Today I want to talk about the short sale process. Many buyers want to look at short sales because they are really good deals what I tell them is you must wait anywhere from 2 to 12 month when you bidding on a short sale you make the offer and the seller signs off on it and then it goes to the bank for approval. You are asking the bank to take less for the property and then the mortgage on the property. this can be a long and grueling process. The lender will send someone out to do a BPO, broker price opinion, and they will come up with an valuation on the property. The bank will sometimes take 10% less than what the BPO is. The problem with short sales are there never guaranteed in many cases that property is sold on the courthouse steps without the listing agent even knowing about it this can be very frustrating for buyers I tell my buyers if they would like to look for a short sale, they should put in Multiple offers because there are never any guarantees.
One thing you can do it the BPO comes back high and there is deferred maintenance on a house is have a contractor go in and do a bid on the property. The contractors bid will have the price/ cost of repairs. The items that the house needs to be safe and comfortable for a buyer. After you get this contractors bed you can submit that to the bank and negotiate with them further on the price. Next you wait, that’s the problem was short sales they sometimes take a really long time.
Your chances are greater if the there is only one lender and if the short sale has been approved. An approved short sale is one where the bank has decided it will take a certain price. In these situations the bank is ready to accept an offer and the process will move much faster.