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Sunday, March 17, 2013

When Buying a Short Sale, Choose Your Lender Carefully...

Short sales have been around a long time.  I don’t know how long but they have been a major portion of the Brevard County, Florida real estate business for at least the past six or seven years.

Short sales involve the purchase of a home being sold for less than the mortgage owed usually due to a hardship situation.  Because of this deficiency the seller's mortgage company (sometimes more than one), must approve any offer to purchase.
The short sale approval process can take months so all parties involved must be prepared to wait and then prepared to act quickly once approval is gained.

Often the abbreviated approval to close deadline requires everyone to act quickly.  Inspections must be done (even if purchase is "as is" an inspection should always be a contingency).  Lenders must get the mortgage application approved, appraisals done, insurance binders in place and more.

Short sales require and experienced real estate agent as well as an experienced mortgage loan originator.

Recently I had a buyer receive approval and then I found out the lender had never been involved with a short sale.   This lender advised me their institution was inflexible (meaning they were on their timeline and no one else's really mattered).

Her last statement mad me realize I had to refer my buyer to another lender who had experience.  I am hopeful we will save the deal for my buyers because the new bank will get the job done within the deadlines provided by the seller’s lender and the contract.

I also learned a lesson here as well... if I don't know the lender interview them early and educate them in the short sale process, if needed.

If you are considering selling your Brevard County, Florida house as a short sale, let me help you.  



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