What is the typical process of buying a short sale?

A shortsale means that the sellers property is not worth as much as or more than what they currently owe their lender. Therefore, the sellers are asking their lender(s) to accept an amount from you the buyer that is less than what they owe.
When buying a shortsale the process involves the following elements:
1. You must have a pre-approval/pre-qualification letter
 2. You need to know how many loans are in default or coming in “short” from the sellers side
3. You need to know if the listing agent has experience with submitting and closing shortsales
 4. Understand that shortsale lenders generally refuse to pay for HOA transfer fees, HOA document fees, and repair requests.
The buyer submits their offer to the seller. The seller selects the one (1) offer that is the best in their eyes and it is sent to their lender(s).
Then their lender(s) decides if they will lose more money accepting it as a shortsale or refusing the shortsale and eventually declaring foreclosure on the property should the seller stop making their payments.
Let’s say the lender(s) decides to allow the property to be sold as a shortsale. Then the lender(s) decide the amount they need to make, called “Net”.
The lender(s) will then either submit back an acceptance of the purchase agreement, counter the purchase agreement with their own terms or demands, or refuse the purchase agreement.  This can take anywhere from 20-90 or more days. Typically we see the response come back around 45 days from the lender(s).
At this point the buyer has the opportunity to move forward with the acceptance and start their inspections, etc. Decide if they will accept the counter offer as-is or re-counter themselves. Or walk away once receiving the refusal notice.
Once you are in contract, everything is pretty much similar to a standard purchase, except longer. Response time from the lender(s) throughout the process can be 3 business days to weeks. Each and every time you need to communicate.
Shortsale closing timeframe can range from a miracle of 30 days to more than a year. It all depends on how many loans, is the listing agent submitting information correctly throughout the process, do the lender(s) want to shortsale the property, and you the buyer doesn’t walk away frustrated before the deal is done.
Please understand that this is just a very brief description of the shortsale process, there are many different scenarios and factors that could cause each shortsale transaction to be completely different.

Raised and educated in the Bay Area, I have an unique insights and perspective on the area. As a Mother I have first-hand knowledge of the local school systems, as well as recreational and business opportunities. My clients' satisfaction is my ultimate goal, and my genuine love of people makes a personal approach to service the key to fulfilling Real Estate dreams Whether buying or selling, I am committed to meeting my client's expectations. I understand that buying or selling a house can be a stressful time. With my expert knowledge of the real estate process, I am able to guide my clients and relieve some of the stress. I love what I do, and I am dedicated to providing professional service with honestly and integrity. My mission is not complete unless my clients are happy. Please contact me if there is anything I can do to help you.

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