Abracadabra: Short Sale Magic
I may be jaded, but I’m not convinced that short sales are as easy as outlined by Christina Inman over at Real Estate Dispatch in her piece called Real Estate Agents Can Process Short Sales in Seven Easy Steps.
But, I’m not sure agents realize just how simple this process–which can net them some serious profits and help them build some great contacts for the future (remember that homeowners could qualify for another mortgage at a reasonable interest rate in as little as 18 months if their short sale is completed successfully–which means they’ll probably be needing an agent to find them another home in as little as a year-and-a-half…).
Yes, the steps she outlines are sensible and smart. BUT I agree with one commenter who said “Im afraid its not quite that easy. Short sales have many more pitfalls.” There are so many stumbling blocks to getting a short sale through – first and foremost is getting the bank to allow it. Yes you can document and support your comparables, photos, etc. but given the huge stack of short sale applications and foreclosures in front of yours, TIMING is the next biggest issue.
I tell my clients that if you want to buy a short-sale, be prepared for it to take anywhere from two months to a year. Because that’s the reality. Short sales used to be fairly straightforward – prove there is a need, prove that the loan is bigger than the home is worth, prove that financially you are unable to make your payments. Even then, though, it was hard to talk to a real person. And to CONSISTENTLY talk to the same person – impossible.
It is not insurmountable to get a short-sale, however . Just know that patience will be your friend in the long run.
