If you are considering relocating to another city, county or state, a Short Sale may be just what the “real estate doctor” ordered.
With short sales, you will have the luxury of being able to view the property, most times, when it’s occupied. You are also dealing with someone “the owner” that has information about the home that is in distress. Versus dealing with a Bank Owned Foreclosure where all of the Real Estate Disclosures are stamped “REO Exempt”.
Although some of the Banks are increasing their “shorts sale approval” time frames, you are still looking, for the most part, at a 6 month window from offer submittance to closing. That may be just enough time for you to run all of the intel and gather all of the facts related to your real estate decision.
The number of short sales is increasing as banks like the idea of getting rid of properties before taking ownership of them. One of the biggest hurdles to date with the short sale process has been time. The amount of time that it has taken to close a short sale deal has been roughly 9 months on average, frustrating to both the buyer and seller.
Those buying short sale properties as an investment may have time to waste waiting for deals to close but many looking to move in to a short sale property do not. Banks have stepped forward to do their part in making the short sale process move along at a quicker pace, which is much more attractive to buyers.
Banks have come to the conclusion that it makes more sense to offload distressed properties before they hit foreclosure. Once a property becomes bank owned the bank is responsible for upkeep and marketing while waiting for a buyer. Banks have never wanted to be in the role of landlord or seller and have thus come around. Today banks are working harder to help short sales come together in a more timely manner, and some banks are even offering cash incentives to home owners to move forward with a short sale to avoid foreclosure.
Bloomberg News had written an article about the Banks speeding up the Short Sale process. Have a read – click here!