From looking at some of the search strings (what you type into Google and other search engines) to find my blog I have come up with a list of great questions by you the buyer in Central Oregon.
- I found a short sale but discovered there are past due bills – who is responsible? Several homes that are bank owned or short sale have past due Home Owner Association dues, water and /or sewer bills and so on. The answer is not as simple as you would think. It depends on how you write your offer and how much research you and or your agent do.
- How long does it take to close a short sale? Many times a short sale is a long process and other times it can move along more quickly. A couple things to keep in mind is that the lender of the property make the decisions, and if there are multiple lenders this can be a little trickier. A buyer of a short sale should expect it to take anywhere from 6 weeks to 6 months. Do not give notice where you are living until you have the keys as everything is subject to the bank’s approval and things can change quickly. Give yourself lots of time and be patient.
- What is the average response time from a bank for a short sale? This depends on more than just you the buyer – it depends on the bank, the amount of files they are processing, the property and the status of the seller’s loan. There are a lot of factors that will increase or decrease the response time from the bank.
- Can we occupy the home before closing? Most likely NO and why would you want to? If the bank makes changes to the contract that are not acceptable to you and you have moved in you may be moving again. The seller is in possession of the home for a short sale. Remember that if a lender tries to give the seller a 1099 or asks for them to pay the difference the seller can cancel the contract. These are items you may not know until the end of all your waiting.
- Which is better a short sale or a bank owned property – a short sale may be a great option but there is a lot of waiting. A bank owned property is just that already owned by the bank and can be purchased just like any other listing on the market without the wait. Closing on a bank owned home is generally the amount of time your lender will take to close the loan.
- Can I ask for repairs? Most short sales you will not receive any repairs although they can always be asked for the worse that can happen is the seller and or the bank say no. On a bank owned home many times repairs can be and are approved by the asset manager or the bank. It never hurts to ask.
Please ask more questions below by leaving a comment – I will do my best to answer you through email and on this post (if you provide your email).
Thesa,
This Post on questions people want to know about short sales in your area of Central Oregon is great. I haven’t seen some of those answers written before, nice job.
Thanks Kathy – I took what folks were looking for on search terms to collect this list – I hope it helps some buyers out and explains what they are trying to find.
Thesa,
Great idea – thanks for putting this together! There are some great opportunities out there for buyers in today’s market. In Charleston SC, I get calls daily from buyers interested in putting an offer in on a “short sale” property. As a “buyers agent” with experience in short sales, I really explain the process to a buyer and prepare them for a potentially drawn out and frustrating experience. They risk spending money on inspections etc….. to then have the deal fall through at the last minute. If the buyers have the patience and the property really suits their needs then it might make sense to move forward. If the buyer needs to coordinate the closing of the short sale property with the closing of the sale of their current home they could be in for a bumpy ride. The short sale lender does not care if all your belongings are in moving truck and your dogs are in a kennel. A “short sale” situation does not automatically make a property a “great deal”. After you do all of the repairs that may be needed etc…. what have you really gained? There could be a home listed just down the street with realistic sellers who have taken good care of their home that could just as good an opportunity. A buyer should find an experienced “buyer’s agent” that will explore all the options!
It is amazing what can and does happen in a short sale. In Central Oregon we see a lot of funny things. I loved your comment thank you – buyers need to understand that it requires lots of patience.
Hi, good post. I have been wondering about this issue,so thanks for posting.
Glad I could help – let me know what I can do to assist you.