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Visitor
k_raviv
Posts: 1
Registered: ‎11-30-2012
0

do short sales really take forever to go through?

We have been looking for a home in either Forsyth or Cherokee county, but are also considering Fulton.  Our realtor has refused to show us any short sale homes, stating they could take possibly a year to hear back on, and after waiting that long, might not be approved.  Our realtor also refuses to show us pre-approved short sale properties.  We have had to pass by a lot of suitable homes because of this.   So my questions are the following: is it possible that it could be worthwhile to put in an offer on a short sale?  and is there any way to ensure that an offer on a resale will be given consideration in a timely manner?     Thanks much.

Visitor
clearbleusky
Posts: 1
Registered: ‎12-01-2012

Re: do short sales really take forever to go through?

I am a first time homebuyer. I started looking in June of this year. I've been involved in 2 short sales. So, speaking from a buyer's experience, you will need to have a lot of patience and be okay with taking a risk. On the first short sale, I really loved the home. The bank took approximately 2 months to respond to my offer. The original price of the listing was for $89,000. I offered $79,000, not knowing that on a short sale you should offer your highest and best. Please keep that in mind. The bank counter-offered at $90,000. I accepted because, again, I really liked the house. However, for the 2 months that I waited, the listing agent did a terrible job communicating with my agent. That made the experience worse than what it needed to be. When I finally had an inspection on the house, I ended up not getting it because there were so many problems that the owners did not address while they were living there. After my inspection, the listing agent ended up dropping the price by aboout $30,000 because the house wasn't selling. Now, I think someone else is in the process of buying it. 

 

I put in an offer on a second short sale around the end of August or Labor Day weekend. I still haven't received a response from the bank, and now I may end up buying a house directly from a seller. 

 

The lessons I learned from short sales are the following:

1. You have to make your best offer so that it looks attractive to the bank. If the bank ever responds to your offer, get an inspection! It's so important. You don't want to buy lemon for a house.

2. You have to have a lot of patience and keep looking for other homes while you're waiting to hear from the bank.  That's what I had to do because my offer on the second house was at the max I could borrow for a mortgage. If the bank counter-offered over that amount, there's no way I'd be able to buy the house, and time will have been wasted.

 

Finally, I was able to risk making offers on short sales because i am in a rental lease. I have until the end of February to wait. How long a short sale takes depends on the bank, as well as the listing agent and your realtor. If your agent is directly telling you that he/she will not participate in a short sale and is not showing you the homes you want to see, I'd find another agent who will, provided that is what you really want. Both agents have to communicate well in order to help you get the short sale home. 

Redfin Agent
willfassinger
Posts: 45
Registered: ‎02-24-2012
0

Re: do short sales really take forever to go through?

First, "clearbleusky's" repsonse is a great account of real scenarios.

 

Yes, it is our experience that short sales can take between 2 months and year and a half.  However, we typically estimate in the 3-9 month range.  The most important thing I like to stress to potential buyers or lookers of short sales is that the list price is almost always set by the agent and/or owner and NOT the bank.  What that means- as you saw in the previous response- the bank my counter or approval a  higher or Much higher price than that it is listed for.  For that reason, it is best to discuss with your Real Estate Agent the estimated market price for the home.  Then do not expect to pay much less than a 10% discount from that.  Essentially ignore the list price and do your own homework to determine proper value so you don't think the bank is going to give you a $200k home for $100k.

Second suggestion - do your inspection right away just as you would with a typical resale.  That way you know if you want to wait around for that answer from the bank anyway.

Next, find an Agent willing to work with you!!!

WILL FASSINGER | REDFIN | AGENT
will.fassinger@redfin.com | Tel:678-871-9455 | License #:347393

Silver Contributor
basschick
Posts: 496
Registered: ‎07-17-2012
0

Re: do short sales really take forever to go through?

sounds like you need to find an agent with short sale experience - and you will need patience and some luck.  keep in mind that not all short sales go through, regardless of how good both agents are and how cooperative you are, but some people on redfind have found the homes of their dreams by working with short sales, too.

Visitor
John919
Posts: 5
Registered: ‎12-07-2012
0

Re: do short sales really take forever to go through?

In a short sale you have to be patient,get an agent with proven experience in shortsale.Make sure the house is well maintained and in marketable condition and does't look like a foreclosure.

Visitor
SophiaSimmons
Posts: 2
Registered: ‎12-31-2012
0

Re: do short sales really take forever to go through?

nice content !
Contributor
cathymhue
Posts: 17
Registered: ‎03-06-2013
0

Re: do short sales really take forever to go through?

I think banks are enouraging borrowers to shortsale instead of foreclosing, so there are plenty of short sale transactions going around. You just need to buy right broket. http://articles.orlandosentinel.com/2011-10-10/business/os-short-sale-incentive-20111010_1_short-sal...