When dealing with a Short Sale it is best to have patience.
A Short Sale is when a lender accepts less than what the homeowner owes on their mortgage.
But...before the lender accepts the offer several steps need to occur.
The lender will want the property evaluated. The lender will order a Broker Price Opinion which will determine the value.
The lender will want ALL documentation from the homeowner. Any missing or incomplete documents will delay the process.
Lenders are currently overwhelmed with offers, counteroffers and foreclosures. Therefore it is not uncommon for a Short Sale to take anywhere from 45 - 120 days to close.
However for you the buyer, short sales can be a good deal (not a steal) a good deal as long as you are aware
of the extra time it takes to close.
Do not go at it alone, because short sales are complicated it is best to have a knowledgeable real estate agent involved.
And remember have patience.
Maria Mastrolonardo
Naperville IL Real Estate Agent
(630) 248-6077
Maria Mastrolonardo is a full time Illinois Realtor specializing in Short Sales, has been helping home-buyers and home-sellers since 1997. Can help you with any questions or information regarding Short Sales for the Western Suburbs of Chicago which includes but not limited to; Naperville, Aurora, Downers Grove, Lisle, Plainfield, Bolingbrook, Warrenville, Wheaton and Woodridge.
To reach me call/text at (630) 248-6077 or mmastrolonardo@gmail.com
You can also find me here!
The foreclosure ones aren't any better. We have one now going on four months.
I just closed one with Countrywide earlier this month that we started clear back in November 2007. It took us more than 2 months to get an assignment and we were never given a phone number to the negotiator, the negotiator was reassigned 2 different times and he would only work through e-mail. There were so many surprises with the terms of the short sale that none of us expected it to ever close.
Thanks for the short sale definition-- it's the best I've seen--where were you 10 years ago when I first heard of Short-Sales--but this re-affirms my decsion not to do them!
John - You are right, foreclosures are just as bad. Thanks for your comment!
Sam - Wow that is a long time! Thanks for your comment!
Aida - They are not that bad, you just need to know going in how long it will take. Thanks for your comment!
Maria...where have you been? Hopefully making some LONG GREEN from the SHORT SALES! Great post.
Pete - Thanks for your comment!
I have been waiting for over a month now for a response from the bank on my short sale. I have heard it can take much longer. All of this does not make very much sense to me. The homeowner listed their home for sale, which is a short sale, for a price and my client agreed to purchase at that price. Now we have been waiting for the bank to approve it for quite a while.
Wouldnt it be better for the bank than to have it go into foreclosure??
Rather than waiting for the bank to respond, call them everyday, if not they will more than likely forget about you. At this point they are all overwhelmed. Good Luck!
Hopefully there will be enough homes on the market with real sellers I won't have to mess with short sales. They seem to be quite the mess.
Gene - Thanks for your comment!
Well put Maria, I have seen some good deals on short sales recently, and if the buyer is told the correct time frames and guided through the process it has that much greater of a chance to close.
Mike - Exactly, the buyer needs to be informed and then they can make the decision whether or not to move forward. Thanks for the comment!
Great tips. I like to find out more info on a short sale so that I can gauge how much patience my client needs. I always like to find out what liens are on the property...what are the amounts....if they are in default...if a notice of default has been filed and if there is a foreclosure date. If they have an fha loan...if the seller has taken a fha required class. So much more info helps us know how to work each one differently.
Dave - You're right, each property will be different and with as much information you have, you can then gauge accordingly. Thanks for your comment!
I have a couple that are taking forever. I am patient, but for the most part think short sales are a waste of time.
Chuck - Thanks for your comment!
Maria, besides understanding well the process of a short sale another blogger I read today said that he was successful in only 20% of the time in getting the deal to close. If true, it makes you wonder why Realtors even assist clients in this area.
Gary - I would say that it's trying to help the seller out of a bad situation, but it is hard to get done. Thanks for your comment!
Well said. You are right on target!
Melody - Thanks for your comment!
Your title says it all Maria- I'm in the sixth month on one. The sellers are great people and I'm hopeful we can work this out. It's not for the faint of heart but when it works it's a big sigh of relief for the seller and and a good opportunity for the buyer.
Chuck - That's what sellers need to realize as well is that they can't wait too long or we can't help them out of their situation. Thanks for your comment!
Hi Maria. Friendly and informative. You are cool.
I want a referral fee when I bring you to Ryan Hill!!:)
Ken
Hi Ken - Thanks for stopping by :) Bring me to Ryan Hill ? Interesting :)
I cringe when I see "short sale" on the MLS. But I know it's reality and I need to do them! But I hate them!
Maria, so true...patience, patience, patience. If all is communicated up front and everybody knows the process and the time frame it shoud be for a pleasant ride! (give or take a few bumps) But what a fabulous outcome!
I have done several short sales and it can be a little stressful for the typical real estate agent. But, for me the process wasn't bad at all.
I think I may write an ebook on how to get short sales done. It's all about the technique. You have to prep the deal. Many agents spend too much time waiting for the bank to set the price, waiting for the bank to answer back and waiting for the bank to send out a short sale package. Be preemptive!
If you don't do all of that, you'll save about 50% of the delay time. Some will argue, but you can't argue with the results. And, I have nothing to prove here nor any reason to lie. I do loans.
But, read this post, read between the lines and follow some of the pointers. I guarantee, you'll be happy doing short sales. This should be treated as sideline revenue source so don't spend all of your time on these deals.
Churn'em and burn'em, quit wasting so much time.
Good luck,
LaNita - Unfortunately we will be seeing more and more. Thanks for stopping by!
Lynn - Yes! That is the whole point, to be up front and communicate. Thanks for your comment!
Kevin - Yes, all about the follow up and being on top of things that makes the process go quicker. Like the tag line :) Thanks for your comment!
hi i have had my offer in since feb of this year evrything is done im waiting for the bank to make a decision all the have to do is sign the contract but is taking for ever my patience are running thin but i cant even look at another property because i have signed a perchase agreement and my loan is for this property can anyone give me any answers on this please help me
Tammy - There are a lot of factors with short sales. How long has it been since the negotiator has the complete file and for their decision? I would recommend that you have your agent call about once a week to get an update on the status. Unless there is a second mortgage on the property, it should not take long for the negotiator to respond once they have the complete short sale package. Hope this helps.