If you’re buying a property through a short sale process gone are the days when you can plan on sitting at a closing table at a fixed date and time with a seller happily signing a deed transferring the property to you. You will be dealing with the bank that holds the existing lien on the property (and maybe more than one) and unless you’re paying cash (which will make the process smoother) your new lender. Throw in the seller, real estate agents, Condo or Homeowner’s Association, attorneys, etc and you have recipe for a long and many times gut-wrenching process.
That’s not to say short sales should not be pursued-quite the contrary. I’ve seen persistent buyers walk away with absolutely incredible deals. In my experience if you follow a few simple rules which are listed below your chances of success are greatly increased and your chances of getting an ulcer will go down:
- You need to stay flexible with dates, times, people, etc. If you are not flexible, purchasing a short sale is not for you. There will be ups and downs-delays and changes. It is an inevitable part of the process.
- Don’t sweat the small stuff. Keep focused on the forest not the trees. If you‘re purchasing a short sale you should be getting a good deal. If you have to pay $100 or even several hundred dollars for something unexpected – like a lien payoff that typically the buyer would pay-realize that is just a cost of getting your good deal.
- Request updates - but realize that often there is no additional information available. Once the short sale offer is submitted to the bank the agents, attorneys and seller often are just as in the dark about the status as you.
- Notwithstanding number 3 above, your chances of completing a successful short sale are dramatically increased when the listing agent and/or attorney working on the short sale is familiar with the process and the lender’s requirements. Try to find out upfront about the experience of the seller’s representatives. It will tell you a lot about the chances of your short sale’s success.
