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Archive for April 17th, 2009
5 things to know about buying a short sale home
Want to buy a short sale?
Related post: Buying a short sale vs. a foreclosure, what’s the difference?
For a FREE List of Foreclosures and Short Sales email Kathy Torline at KTorline@msn.com
Do you have questions about buying a Colorado Springs home that is noted as a “short sale”? Here are some of the most frequently asked questions I often hear from buyers, along with a brief answer.
1. Is the Short Sale negotiation process the same for a short sale as for a regular sale?
Yes, except that there is one EXTRA layer: After the buyer and seller agree on a price and terms, the seller’s 
lender (or lenders) and other lien holders must also agree on the offer. This can add anywhere from a month to 5 or 6 months to the process.
2. Are loans types the same for a short sale as for a standard home purchase?
The type of loans a buyer can use are the same as for a standard real estate transaction. But if the property is not in good condition, a buyer may not be able to use a VA loan or a FHA loan; as the property may come back with conditions from the appraisal process; and most sellers in a short sale situation don’t have the funds to make the requested repairs. Most short sales are sold “as-is”.
3. What are some of the disadvantages of buying a short sale property?
It can often takes the seller’s lender(s) and lien holders a long time to respond to a offers, and a buyer can become frustrated and give up. Also, some Realtors accept offers from several buyers, and submit all of these offers to the lender(s). Read the rest of this entry »
