Short Sales

What is a short sale?
A short sale is where a property is being sold for less than what for less than the value of the loan (or the net proceeds from the sale are less than what is actually owed).  The lender accepts the sale as payment in full (or "paid as agreed") for the loan. 

Is a Short Sale a pre-foreclosure?
A short sale is not necessarily a pre-foreclosure, in fact it may not even be delinquent.  A short sale simply means that the net proceeds from a sale will be less than what is actually owed.

Why this can be a great opportunity for a Buyer?
Buyers can pick up properties for anywhere from 5-20% below market value.  Rather than play the guessing game as to what you should offer on one of our listings, we have our listings priced where we are confident the bank will approve the short sale.  No sense writing an offer so low that the bank will not even make a counter offer. 

Does the process take longer than a normal home purchase?
Yes, please be patient.  Although some short sale processes can take 2-3-4 months before hearing from the bank, we use a professional short sale company with over 16 years experience.  With this experience, our extending team has developed sold experience and created an extensive network of contracts with lenders therefore typically shortening the timeline to get the short sales approved. 

Do I have to open escrow if I make an offer?
All offers meeting the minimum price requirements and terms and conditions are forwarded on to the bank for review.  They are not accepted during the evaluation process and thus no escrow is opened until we have an accepted contract.  The Buyer may rescind their offer at any time prior to acceptance.

Do I still get an inspection period?
Yes, the Buyer is still entitled to their specific inspection period (standard verbiage is 10 days).  The clock will start counting from 'Contract Acceptance' which is deemed as the day the Agreement Notice is delivered to the Buyer or Buyer's Broker.  All time periods provided for in the Contract, including the Inspection period, shall commence o the day following delivery of the Agreement Notice.

Can I request repairs on the home?
All short sale properties are sold As-Is.  However, Seller warrants and shall maintain and repair the Premises so that the Premises will be substantially the same condition as on the date of Contract acceptance.  The AAR AS-IS Addendum must be incorporated in to all offers.

Where can I get more information on how to write the ideal offer on a short sale listing?
Please see link above 'Short Sale Disclosure'.  This document will go over more details of the short sale process as well as recommend the more favorable terms of a purchase contract from the bank's perspective.

For more detailed information on the buying of a short sale listing, please contact Sheryl Willis at 602-748-5588