Short Sale 101 – how long till I can get this property, anyway??

Posted on September 10, 2009. Filed under: First Time Buyer help, Informed Investor Alliance |

So, you can’t find any decent REO’s, or you’re getting outbid.

And there’s not enough equity sales.

You want the 8k homebuyer credit.

You find youself here, fishing in the sea of short sales in Orange County.

You’ve already read our post about what every buyer needs to know about a short sale.

But you’re still stuck!  Short sales won’t close in time for the 8K first time buyer credit, right?!  Honestly, probably not 80% of them.  But a small percentage will.  What clues should you look for?

1. Check for the word “approved” in the notes.  Short sales that have been approved by the bank can many times sell within 30 days.  Its getting the bank’s approval that usually takes months.

2.  Look for experience / feel of the listing agent or team. Do they respond?  Are they on top of things?   If the listing agent doesn’t know how to deal with the bank it can add months to the process.  Go ahead, Google them.
3.  Do you see Short Sale – Notice of Default on the MLS report ?  This means the property is in process of foreclosure and the bank has filed a notice of default on the property.  You’d think notices would be filed immediately, but many times the bank waits for 3, 6, or 9 months of no payments until filing the NOD.  After the notice is filed, stats are very high that a foreclosure will occur within the next 90 – 120 days.   On short sales with a NOD the bank has a little more motivation because they aren’t receiving any money from the current owner, and they are being offered in essence, a settlement and solution with your offer.

4.  Check for Short Sale – offers submitted – this indirectly tells you the current owner has submitted the hardship package, because it usually needs to be submitted with the offer.  That being said, I have seen this status used when agents had a lowball offer in hand but NOT submitted to the bank.  It depends on the agent, and their ethics.  This status is better than a short sale with no offers submitted, but you are still probably looking at at least 60 days and multiple offers when here.  Not worth chancing for your 8K credit, we need to find you an approved short sale or one close to foreclosure.  PERIOD!

5.  Check notes for only one mortgage!  We’re currently STILL WAITING for an answer to one of our “approved” short sale offers that was literally submitted in JUNE.  (Its Sept.)  The first “approved” the price, but the second loan had not approved their settlement, and the agent didn’t notate that detail in the listing.

Short sales are complicated, but we can help.  Mostly by having the best Orange County MLS searches so you get new REO and equity listing emails the DAY they come on the market!  We still recommend buying foreclosures or equity (normal) sales to have the best experience with today’s market.

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    Orange County, CA Real Estate for hip first-time buyers and investors. Plus, fun things to know and do in OC.

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