Thursday, May 13, 2010

Rules of the Short Sale

Short Sales and Foreclosures remain the steadfast dominant sale in the under $300K market in Hampton Roads(and many other markets).  The "Why it is?" has many answers:

1.  Affordability                          3. Tax-Credit Eligible
2.  First-Time HomeOwners       4. Breadbasket of bad loans or over extended people(??????????)

Regardless of the why to this price range, it is where most the sales of these categories have occurred.

Short Sales and Foreclosures are in every price    
    range of homes and in every market

So don't be surprised that you run across one in your home search. 

         A few rules to live by:

1.   Seller's acceptance of your offer doesn't guarantee the bank will accept your offer.

2.   Patience is REQUIRED

3.   Bank holding Mortgage may have foreclosure proceedings started but you won't find out until too late

4.  Patience is REQUIRED

5.  Bank holding Mortgage has numerous short sales/foreclosures in process and must assign a given foreclosure or short sale to an individual who may not be named until your contract has been accepted by the seller.

6.  Patience is REQUIRED

7.  Seller's Agent may not have a direct line to their contact at the bank; email or phone messages are their
      sole option thus information on status may truly not be available.  Seller Agent and Seller will be as
      anxious as you are...including in a foreclosure.

      You may be required to do any home inspections, termite inspections, get utilites on for inspections and
      order the appraisal to meet the planned closing date without knowing if your contract was received or
       not.   You learn this is required as the bank will still want you to close by the date thought the
      acknowledgement of acceptance is delayed.

8.  Patience is  REQUIRED.

9.  Upon acceptance of your offer(5 days or 9 weeks later), the bank will typically rewrite the contract to
       ensure you know the home is being sold as is where is and that you must follow the guidelines
       established by the bank.

10. Patience is REQUIRED.

11. Bank is ready to close.....so have your ducks in a road and meet their timeline or you could be in
        default!!

12. Patience is REQUIRED

So why would anyone put a contract on a foreclosure or short sale??? 

                      Because the house is a real bargain!!!!!! 

    (Note:  Many short sales and foreclosures are not bargain.....consult a Realtor to ensure you get a bargain
                  rather than a headache from the process and a bad deal!!)
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