PRACTICAL ADVICE FOR BUYERS WHO WANT TO BUY A SHORT SALE
- Understand, there are no guarantees in a Short Sale.
- Hire an experienced Short Sale Agent. Your Agent should have the SFR (Short Sales & Foreclosures Resource) Certification or CDPE (Certified Distressed Property Expert) Designation. Both of these are recognized by the National Association of Realtors as professionals who can assist you in a Short Sale.
- The Lender may require more cash or a higher price in order to approve the Short Sale.
- Understand the Lender will most likely not allow the Seller to pay any of your closing costs or give you any allowance for repairs.
- Find out the status of the Short Sale process.
- Have your Agent conduct due diligence to determine number of mortgage liens and any other liens on the property, assessments, or delinquent association fees
- Confirm that the Seller's Bank/Lender has agreed to a Short Sale in principle.
- Don't go into a Short Sale is you have a specific timeframe that you must follow and have the home closed.
- Be sure there is an out if the contract is not approved by the Lender by a certain date. You don't want to be stuck in "limbo". Make the contract contingent upon some date that is reasonable given the long wait you are expecting in the first place.
- Stay in touch with your Agent and the Settlement Agent.
- Asider from initial earnest money deposit, do not pay for inspections or other expenses until you are confident the Lender will accept your offer and approve the Short Sale.
