The short sale rules are simple, but unwavering.
For the investor who would like to enter the world of short sales, the rules are different from those of a traditional purchase, however, the rewards can be substantial.
- Lender is in charge – The lender makes most of the transaction rules and timetables—no one else does! This means that the process could take anywhere from a month to a year. This could be difficult for a homebuyer looking for a residence, but quite doable for the investor.
- Lender’s bottom line is unknown, at first – Offers are often submitted with no idea what the seller/lender’s bottom line is for that deal. What do they really want? They may not even know until your offer and the seller short sale package is being looked at—and followed up with a Broker’s Price Opinion (BPO) by another agent hired by the lender, or by an appraiser. The agents (both the seller’s agent and the buyer’s agent) must ber able to put together a package that makes SENCE to the lender. For the investor, make sure that your agent understands the rules and is capable of putting together this package. Don’t always rely on the sellers agent to know what he/she is doing.
- There’s little if any negotiation – Offers are rarely, if ever, negotiable. Your offer will either be accepted or rejected, and you’ll never know the reason why. This is the reason the offer must make sence to the lender.
For more delails please contact me.