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sara

With the crisis in the real estate market, a large number of properties have been listed for short sale. In a short sale, the real estate sale proceeds fall short of the balance owed on the mortgage. The process of short sale is quite complicated and if it's not handled properly, either the buyer or the seller may face a loss.

Here are two tips that you should keep in mind while short selling your property:

Poor condition of the property: As a seller of the property, it's your responsibility to maintain it and keep it in a perfect condition. A well-kept property would attract more buyers and thus, it would be easier for you to sell it off. If the buyers find the toys scattered all over the room or the unmade bed, they won't be attracted to buy your property.

Wrong price of the property: Those properties which are listed with an appropriate price are easier to sell off. You should list the property with such a price that it attracts the buyer as well as the buyer's lender. Also, you lender should feel that the price is appropriate or else he may cancel the deal from his end.

While, you're buying the property from a short sale auction, keep in mind the following two tips:

Do not ignore legal and insurance information: Most properties facing short sale are sold "as is". It is your responsibility to check out if the property was in a flood plain or if it had any un-permitted renovation. Properties located in the flood zone require additional insurance coverage. Moreover, re-selling such properties can also be a problem.

Check out the property problems: The property that you're buying may have many problems. Especially empty properties may have mold, termites, leaks, squatters and filth. So, if you do not check out for such defects, you would have to spend quite some dollars in improving the property.

manoj_gopale · Joined: 16 Feb 2009 Posts: 488 0.00 Dollars($)

buying a home from shortsell auction is a good option but one need to look for the major reason for the shortsell of the house.It will reveal lot more details about the property.

If you are looking this home as an investment then one need to be very careful about all the documents related to insurance, which will finally assit you a lot in selling the property.

Posted: Fri Nov 13, 2009 4:01 am Post subject:

Here are some of the tips for the sellers who want to list the property for short sale:

Non-cooperative sellers: As a seller, you're required to submit the important documents to the bank at the right time. If the bank does not receive the documents, it won't go ahead with the short sale. Thus, the process would be delayed thereby creating more problems for you.

Listing without photographs: While you list the property in the market, make sure you provide some photographs. The online listing websites won't give proper ranking to your properties in you do not privde multiple photograps of your property. Thus, there are chances that the properties may not sell. If the buyers do not get to see the photographs, they won't be attracted to visit your home.

Blue_sky4399 · Joined: 13 Nov 2009 Posts: 3 1.32 Dollars($)

Thank sara for ur short sale information. .

gmakerley · Posted: Fri Nov 13, 2009 12:19 pm Post subject:

thanks, sara...lots more to be said, and let's hope we get some favorable commentary from some of our regulars. i'm afraid i need a few more minutes (hours) to digest what you've written and try to come up with a few pointers of my own...but they'll come...rest assured.

Niicss · Posted: Mon Nov 16, 2009 4:08 am Post subject:

Here are few mistakes that the buyers should avoid while they buy a short sale property:

Do not skip home inspection: If you go for a proper home inspection, it will help you save money and you won't have to renovate the property much. Ask questions to the present owner of the property and inquire about it to know all the details. If the find that you will have to go for extensive home improvement after you purchase it, you'll be able to negotiate the price of the property.

Don't be desperate: It is true that you want to buy your dream home but you don't have to show it to the seller that you are desperate to get the property. It would be easier for the seller to sell off the property to you. You should look into the details of the property and then decide whether or not you want to buy it.

jameshogg · Posted: Thu Nov 19, 2009 10:58 pm Post subject:

We have to agree that the short sale market has become stagnant in the recent times due to the crisis in the real estate market. Thus, patience is the key word here. Check out some of the common pitfalls which can affect you while you short sale your property:

Time limit: The time limit to approve a short sale may vary from lender to lender. In most cases, the lender would take at least 2 weeks to approve a short sale. Some lenders, on the other hand, would take 60 days to approve it. Thus, buyers, sellers and agents must keep the time frame in mind before they make an offer. You can always request the lender to speed up the process. While writing a hardship letter to the lender, you may give him a time frame to respond. You should include that if the lender does not respond within the given time frame, you're free to cancel the deal without penalty. This may speed up the approval process.

Dealing with rejection: There can be various reasons for which your short sale request can be rejected. Lenders can turn down your offer if they find that the proposed sales price is too low. However, as I've mentioned earlier, patience is the key factor. Search for other buyers or re-apply for the short sale with your lender. After all, the lenders will also want to avoid foreclosure as it's costly and time consuming.

Guest

Hi everyone... hope I could get some tips from you all...

My wife and I are planning to purchase our first property. It's a property listed for short sale. The seller seems to be in a hurry and wants to get rid of the property asap. Can you guys give me some tips that I should keep in mind while buying the property? Is there nything that I should look into before completing the deal with them.

Note - income and credit are not a problem.

sara · Posted: Sat Jan 16, 2010 4:39 am Post subject:

Hi Jacob,

I would suggest you to check out the condition of the property first. It is your responsibility to check out if the property is located in a flood plain. If yes, then you'll have to apply for additional insurance coverage after you purchase it. As Niicss has suggested in his post, you should not avoid the home inspection. This will help you know whether or not you'll have to spend a large sum of money in renovations.

Take care.

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Common mistakes to avoid in short sale