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01-19-2011 05:08 PM - edited 01-21-2011 02:36 PM
Just thought I would share this with you all
I bought a short sale through Redfin and it was very fast and easy.
The last short sale I offered on about a year ago took 6 months and by that time I had moved on.
This one took about a month start to finish.
One factor might be that there are a lot more short sales being listed so the banks may have streamlined this process a bit.
My point is don't be shy to buy a short sale through Redfin
01-19-2011 05:46 PM
Totally agreed. Many people have heard horror stories about short sales and thus stayed away from them. The world has changed. Short sale is just another type of real estate transaction and is becoming more & more common. For sure, the normal due diligence applies but there are good deals to be found.
01-19-2011 06:19 PM
Every short sale I've been involved with has been a long waiting game. If they responded to me that fast, I'd be crapping in my pants because it likely means I overpaid.
01-19-2011 09:21 PM - edited 01-19-2011 09:23 PM
The two biggest causes of short sale delays are sellers who don't really want to sell and junior lienholders.
Some sellers just want to extend their rent-free lifestyle and delay foreclosure. They will drag their feet in supplying information to the bank. The bank won't do much until they have a complete short sale application with all supporting documentation from the seller. This can stall the process for months.
If there is little or no money left after the first lienholder is paid, the junior lienholders (e.g. second mortgage) have little incentive to release their liens.
So if you want a quick short sale find a willing seller of a house with no junior liens. It also helps if both the listing agent and your agent have previous short sale experience.
01-20-2011 07:25 AM
lysander nailed it. All short sales are not created equal. Some have a strong chance of success, some have a chance of success, and some have no chance of success. You need to find an agent who knows which category the short sale you're looking at falls into. Best chance by far - 1 loan, motivated seller (there are a few, even in short sales), knowledgeable listing agent. Why motivated seller? Because short sales require sellers to complete a lot of paperwork - must be done quickly and completely. Miss one document and the file goes back to the bottom of the pile.
01-20-2011 08:31 AM
Congratulations Evan! Many lenders have streamlined the process as you mentioned so that once you are in contract, the escrow looks and acts like a more traditional (ie: no bank involved) sale. Was there competition (multiple bids) for this home and can you give me an idea on the location? Thanks and well done!
See all my deals & reviews
01-21-2011 02:41 PM
I think these were the contributing factors to the easy transaction
I used Joshua Essoe who has a lot of experience with short sales
The bank was "ready to go"
We had cash and could close fast
01-22-2011 08:30 PM
foreclosureradar.com will give you and your agent an idea of what is owed and to whom. I subscribe and it is an investment that is pennies on the dollar considering that I can eliminate many (most) short-sellers based on their junior lien holder standing. Of course it is a write-off...being an expense of managing my investments.
01-22-2011 08:33 PM - edited 01-22-2011 08:36 PM
Banks need to wise up and allow short-sale prices that match the market demand. With prices dropping fast, Banks need to approve short sales prices much lower than current prices to match what the market will be like in a few weeks, not to mention a few months if they are expecting interest in a house full of people's crap and a sale ridden with excess paperwork with the chance of a "sudden death" game over at any minute. I need better prescriptions than I have to make an offer on a short-sale.
01-25-2011 02:29 PM
We're about to put an offer in for a short sale property, unfortunately, we've been working with this agent for a couple of months or else we would have looked in a specialized redfin agent.
Having said that, are there any suggestions on how we can speed up the process, or make it go smoother? The place does have a BPO already but it also has two liens on it.
Any inputs is greatly appreciate!