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12 questions to ask before writing a contract on a short sale
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I was out looking at short sale properties yesterday for a buyer who is looking for a Colorado Springs Home, and it was good reminder for me on all of the questions that need to be investigated and asked before making an offer on a short sale.
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There are many things that go into purchasing a shot sale property, and short sales are much more complicated than the average transaction. What’s the most important thing in purchasing a short sale property? The number thing, make sure the Realtor you are using understands short sales, and has a track record of helping buyers purchase a short sale property.
Why do I say this is the number one thing? A good experienced Colorado Springs Realtor, who understands short sales, can make a big different in your transaction. Why, you ask? Because an experienced agent in short sales knows what type of research needs to be done, and what type of questions to ask. Not every short is a good deal, and many short sales don’t make it to the finish line.
Let’s start with the research. What type of info is important to research and what are important questions to know the answers to:
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Is the property priced correctly? Just because the property is priced at $150,000; when it should go for $250,000; doesn’t mean that the bank will accept an offer even close to this low price. Contrary to popular belief; banks don’t give away the property. Many short sale contracts fall apart because the bank didn’t accept the offer from the buyer. .
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How long has the home been on the market? Has it been under contract before? If so what happened to the previous buyers? Did they give up and get tired of waiting for approval? Did their financing fall through? Did they have inspection issues?
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What did the property originally sale for; when was the last time it sold?
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How many liens are there on the property? Every lien has to be paid off at closing and get released. If there is a first mortgage, second mortgage, and a IRS tax lien; there isn’t a good chance on getting the short sale approved. Are there any judgements attached on the property? Each additional lien is one more hurdle to cross; one more thing that needs to be negotiated.
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When was the property last updated? Are there building permits for the roof, the furnace, the new additions, the hot water heater, etc?
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Has the property been maintained? Many sellers who are in financial trouble have deferred maintenance on their home; there may be many things that need repaired and updated. Is the property priced in accordance with the items that need to be repaired? Read the rest of this entry »
Short Sales can be Successful
What makes a successful Short Sale?
If you are interested in a short sale, It’s important to utilize a Colorado Springs Real Estate Agent that specializes in Pre-foreclosures, Foreclosures, and Short Sales; and has a successful and ethical track record. Call Kathy Torline – Nordstrom, 719-287-1049, KTorline@msn.com
Some statistics say that only 10% of short sales result in a successful closing. Not good odds. Made me start thinking about what makes a successful short sale. They do take a lot of hard work and each one is different, but there are some key factors that can make the difference between a successful short sale and one that fails.
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Seller has a genuine hardship.
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Seller is cooperative and motivated to complete the steps required by the lender(s)
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Lender(s) and other lien holders have been contacted and are willing to consider a short sale Read the rest of this entry »
