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Is buying a short sale any different than a normal home purchase?

by PVenkman from Winchester, Virginia. Feb 14th 2013 Reply


Steven Ceceri (123LoanYes)
#12 ranked lender in Rhode Island - 723 contributions

You need to be mindful of the type of investor the property owner has and the number of liens associated with the property before you lock yourself into a purchase offer. Also, the person or company negotiating the short sale may be less than diligent on keeping you informed. I have direct experience with short sales and would be happy to discuss the pros and cons with you!

Feb 14th 2013
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

Yes and No.. The lending side will not be much different.. They will want to verify that it's an "Arm's length" transaction, meaning, you're not buying from a relative... but other than that, it's no different.. From the sellers side, they need their lenders approval before they can proceed, and every lender is different as to how they approach short sales, and the time frame will vary as well. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Feb 14th 2013
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Dave Metsker (DaveMetsker)
#36 ranked lender in Oregon - 2,318 contributions

Get ready to wait, and wait, and wait. Some existing lender service companies are starting to speed up the process. But be prepared to be patient. It could be well worth the wait.

Feb 14th 2013
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Ken Burrows (mortgagesforamerica)
#19 ranked lender in Nevada - 572 contributions

Typically not, the only thing that can be different is if the selling bank hasn't approved the short sale yet, that can get time consuming. But be patient and everything should go through for you. If you need help with financing please let me know. We also have a legal division that helps with the short sale process at no charge to ensure the process is smooth for you. P: 888-320-7888 - www.MortgagesforAmerica.org - Ken Burrows

Feb 14th 2013
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Scott Kinne (Skinne)
#29 ranked lender in Virginia - 74 contributions

From a Lending point of view, there is no difference. However, from the buyers point it is much more time consuming. Even though the "sellers" have signed the contract, it is still up to their bank to approve the sale of the property for less than the amount owed to the bank. Therefore the bank needs to make sure it is a transaction they are willing to make. This process can take from 45 days to 5 months in bad situations, and if you add a 2nd trust into the transaction all bets are off. My suggestion would be to keep looking for properties even though you have this particular property under contract. If you find another property you like prior to the Bank's final approval then you still have the opportunty to withdraw this contract and place one on a new property. Good luck. Scott Kinne- First Heritage Mortgage - NMLS# 182351 - Fairfax VA

Feb 14th 2013
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George Dokos (georgedokos@movementmortgage)
#57 ranked lender in Virginia - 25 contributions

No real difference. Someone from the seller side will be involved as the person approving the short sale. Once you have the approval you can proceed quickly and close the loan. They may require you to use a specific title company but other than that it is just a purchase.Thanks, George

Feb 14th 2013
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Craig Prickett (cpmtgnow)
#160 ranked lender in Florida - 98 contributions

Yes.. Often buying a short sale a closing can be seriously delayed... Not really a mortgage question , more a realtor question. Call me if you like to discuss 954 558 4430

Feb 14th 2013
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Joe Shamie (Joe Shamie)
#4 ranked lender in New Jersey - 1,412 contributions

Other than the time it may take to approve the short sale the transaction shold be too different than a private purchase.

Feb 14th 2013
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,535 contributions

Generally speaking, no. The biggest hassle on a short-sale is the time to get the offer accepted. With a regular seller, you get an answer to your offer usually within a day. You offer on a true bank owned property is maybe a week to get an answer. On a short-sale, you nay make an offer today, and not even get a response for 3 months. If you are patient and have the time to wait for the answer (which may be no), short-sale offers are no different than any other property. www.MortgagesUnlimited.biz

Feb 15th 2013
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