subject: Short Sale Process For Buyer [print this page] Short Sale Process For Buyer
When it comes to the bank accepting your short sale offer there are a few things that have to happen. The first thing is that the seller has to prove to the bank that they can no longer afford to pay them what they owe the bank. They have to show proof of no funds in the bank, having being laid off or maybe some other family problem like death of a spouse. There have to be some kind of a hardship that is proved for the bank to allow the seller to let go the property for less money than they owe the bank.
The second thing is that the bank will request that there are other houses in the area priced around the same price you are paying. They may just not accept any offer that is less than the going rate of any house in that area is. So as a buyer you maybe asking what are the advantages of buying a short sale if you are going to be paying fair market value and also the lender may not accept your offer.
Well often times a lender will accept a short sale in order to save themselves the time, trouble and expense of going through a foreclosure process and the auction. Even worse after all that time and effort the house is not purchased at all, they have to put the house back on the market. At which time the going rate could be way lower at that time, than it is now.
As a buyer interested on a short sale, you still have to do the same investigations that are involved with any other property sale. Even if the property is being sold as is, you still have to do inspections, you still have to submit an offer similar to other property values in the area. You can submit a lower offer and attach a copy of lower priced property in the area.
Then make a case based on those on why they should accept your offer. You should also mention the things that the buyers will be paying for such as home inspections and the like.
You also need to have time to make sure that you are not in a rush looking for a property. It is going to take time to hear back from the bank. Also be realistic in the offer that you put on the table and do not expect to get the deal of the century.
The odds are against you most of the time the bank will not accept that offer. The most important thing is whenever you make an offer for a short sale, make sure the agent includes an addendum. This is a form that says, if within a certain amount of time the bank does not get back to you, you have the right to cancel the contract and get your all deposit back. This protects you as a buyer.
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