The Hassle of Buying a Short Sale

Is it really worth the effort to buy a home that is a short sale. This all depends on a few things. Something that you may want to consider is the length of time it will take you to complete a short sale transaction. Typically it takes 3 to 4 months from the time the purchase offer is submitted to close on the property. If you are in a hurry to move into a new home than purchasing a property that is going through a short sale process is probably not for you.  The reason it takes so long is that typically the people in the banking industry are overwhelmed by the number of properties that are in foreclosure and the short sale process. They tend to have a hard time keeping track of documents that are sent in by realtors and the realtors on many occasions have to refax the documents. A second hassle to buying a foreclosure is you never know if the bank is going to approve the offer. The bank hires other realtors to do what is known as a BPO. This is a basic appraisal of the property so the bank has a better idea on whether to approve the offer or not. They may approve the offer, however in addition they may want the seller to pay them additional funds. If the seller is required to pay money at closing they have the ability to not approve the short sale and then your time spent waiting to purchase the property is all for naught. Also if the bank does not approve the offer the buyer may not be willing to increase the offer and again the time spent is all for naught.

If you have any questions on a short sale, foreclosure  or other real estate question feel free to contact me by email at daveinfenton@gmail.com or call me at 810-347-5354.

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