Skip to content

Short Sales

Short sale – buyers beware.


Its not easy, quick, predictable, a sure possibility of condition of property or title history, etc.

In fact, an adept office in Florida has a disclosure for buyers, to wit:

KNOW BEFORE YOU BUY A SHORT SALE

  1. After the lender receives the short sale packet, the lender may require at least 40-60 business days to approve the short sale.  After approval, the sale must close within lender approved time frame, typically 30-45 calendar days. It is not uncommon for them to run anywhere from 2 weeks to 9 months. It is common to receive no updates, no contact, and no communication at any time from the lender. Often times, this frustrates buyers as they feel as if they are being ignored. In other words, it is highly likely that you will not be able to buy a short sale in less than four months from the date of contract, and during that time, you will feel as if you are being neglected. If you believe this will frustrate you beyond the value you are saving when you buy a short sale, then you should consider buying a home that is not undergoing a short sale. In other words, be prepared to be frustrated during the attempted approval period.
  2. The seller will receive no cash from this transaction (unless it is a HAFA short sale). Any funds usually due to the seller will be paid to the lender.
  3. The seller will bring no additional cash and thus will be unwilling to pay for any closing costs, such as the buyer’s appraisal or home warranty. Should the buyer desire a home warranty (recommended by Century 21 Manausa and Associates), they are free to purchase one prior to closing.
  4. The seller may be unable to pay for maintaining the property. Flaws in the property will remain in the current condition through closing; the seller will not be able to make any repairs to the property.
  5. Should buyer purchase a professional home inspection (highly recommended), the seller will not agree to any requested repairs. This is important to note because many borrowers’ lenders are going to require certain repairs as a condition for loan funding. Buyer understands that these additional costs will be borne by buyer should buyer proceed to closing.
  6. Buyer must communicate to seller through buyer’s real estate agent. Any attempted contact by buyer directly to the seller’s listing agent, the lender, or the seller directly will be ignored as a courtesy to all involved parties.
  7. Buyer and seller are advised that to a degree, all short sales are unique. Every transaction will be assigned to a loss mitigation specialist who will proceed based upon the current needs and goals of the lender for which she or he serves. Needs and goals change on a regular basis, so buyer is advised that any “past experience” might or might not be applicable in this short sale.
  8. Buyer and buyer’s agent acknowledge that we handle multiple short sales and thus requires an organized system of communication in order to best serve all of our sellers’ needs. Buyer and buyer’s agent will receive a link to a communications site in order to be kept abreast of the latest actions on the short sale approval process. Calls made to the listing agent will most likely be ignored if the information is already available on this site. As you might expect, our short sale agent is thoroughly engaged in processing short sales and cannot commit to making phone calls that do nothing to further communication or the process of closing the sale.

More reading:


Please acknowledge the above if you are planning to pursuit a purchase and have not requested to specifically exclude short sale offerings.

%d bloggers like this: