When you are considering writing an offer on a Short Sale you might run into words like, “Approved”, “buyer walked”, “Only 1 loan”, “24 hour response”, “Short Sale Expert Negotiators”, and others.
Each of those words or phrases are attempting to do the job they were written for. Getting you to jump and also ask how high! In most cases approved short sales are only “buyer” and “offer” specific.
There are very few banks that will allow for an offer to transfer to a different buyer. In fact, we have been able to get it done only because of “connections” between a escrow officer we utilize and her relationship to individual Short Sale Managers.
Usually when offers are written, “accepted” by the humans involved and then forwarded to the bank or banks for their Blessing, the original buyers are not in the market to buy a home. They might have bought something else or their financial profile has changed where they are unable to get financing.
The “Only 1 Loan” thing has become a type of marketing tactic within Real Estate circles. One Loan on a Short Sale is better than Two. However, it is not a reason to become overwhelmed with joy. If an agent can get approval with the 1st loan holder – they can usually get approval with the 2nd – But not always.
Ah – The approved Short Sale. This one is good – but see the explanation about transferring buyers. It is almost impossible to get a Short Sale approved without a buyer. I should clarify – not just any buyer from a specific offer for the specific short sale property by a specific buyer.
How about Experts on Short Sales – What does that mean? Experts on Short Sales are usually titled so because of some type of Certification. CDPE is good case and point. At the beginning of the decline, becoming a Certified Distressed Property Expert was done by attending a class and paying a fee – several hundred dollars. Then you have Short Sale Experts, another certification that is obtained by paying a fee to use that Registered Trademark. There are other types of Short Sale Certifications. Do they make your Real estate professional better at negotiating short sales? Do they give the Realtor you hire to negotiate your short sale an advantage over other agents that have not paid the fee or lack the certification? Ask your Realtor and see how they help 🙂
To speed up a short sale and to get it to move faster on purpose. There are a few ways to speed up the process with a Short Sale. You could have your real estate agent contact the other agent and put the pressure on them (not usually helpful). If your Realtor has a connection or contact within the bank that has to approve the short sale – this might be helpful if that card is played. Example of this: We handle Citi Foreclosures from the Real Estate owned Department. We get Citi Short Sales where we are representing the buyer – we are able to make a couple of calls and find the Short Sale Department and the Banker assigned. It helps to grease the skids and to get our clients what they want.
Ask your Real Estate agent – hire a professional – keep the lines of communication open when it comes to your wanting to buy a short sale. It is not an easy process, but the good thing is you usually can purchase a property at less than FMV – Fair Market Value. All you need to do this is have the patience and staying power.