I often like to respond to people who have visited my blog and are looking for answers to real estate questions.  Recently, I noticed some ask ” How is a Short Sale Different from a Normal Sale?” Here is my answer to this person:

SHORT SALES TAKE MORE TIME:

The process of buying a short sale takes more time to sell. Typically, a short sale can take between 3-6 months for the bank to approve a short sale.

SOLD “AS- IS” CONDITION:

When buying a short sale you are buying the home in “AS-IS” condition.  It is the responsibility of the buyer to do a home inspection prior to writing an offer because the bank will not allow any sales contigency that would require or reduce the  purchase price in the initial offer.

 TRANSFER OF INITIAL EARNEST MONEY:

The offer must include an initial earnest money and balance of earnest money but typically no money is required from the buyer until the offer has been approved by the bank

FINANCING:

Buying a short sale property requires the buyer to either show proof of funds if a cash offer or be pre-approved for a loan which is subject only to an appraisal. Once the lien holder has approved the short sale the buyer must be prepared to close within 15 days from the date of the approval.

OFFER CAN BE WITHDRAWN AT ANYTIME:

The buyer has the opportunity to withdraw their offer at anytime during the process. This allows the buyer to continue to look for other property on the market while still negotiating an offer with the bank.

THE BANK RESERVES THE RIGHT TO CONTINUE MARKETING THE PROPERTY:

Because it takes so long to negotiate a short sale the bank reserves the right to continue marketing the property until it closes. Typically there are multiple buyers ( primary and back up buyers) in and out of the buying process and the bank wants to net the highest dollar to minimize their loss.

For more information on Short sales please visit my 800 number:

1-888-307-7311

Understanding short sales:  Extension 8

Pre- Foreclosure Specialist: Extension 11