Get Educated on the Short Sale Process

Let’s face reality, we have a good four to five years of short sales left so Realtors, buyers and sellers need to be educated on the process.  Over half the homes I take my buyers to are short sales.  It is imperative as a Realtor, to explain to the buyer what to expect.  First the short sale process is not fast (it usually takes about 3 months, but it could take longer).  A buyer has to be able and willing to wait.  Second the buyer needs to understand they could be held to the contract for up to three months while the lender contemplates their offer, therefore they cannot put an offer on another home while they are waiting for the lender’s response.  The is under no obligation at all to consider, respond to, approve or disapprove your contract within any specified time period.  It is very possible that a lender will reject your offer after you have waited three months for them to respond.  Buyer’s need to understand that they need to put their best offer forward in order to hopefully avoid wasted time and rejection.  Lender’s are definitely willing to pay a little less than market, but they certainly aren’t giving properties away.

Seller’s on the other hand also need to understand that a short sale is a very slow process, but the alternative of foreclosure is going to wreck their credit history for 10 years or more.  Current and future employers will be able to see the foreclosure on an employee’s or applicant’s job record and may decide to “let you go” or not hire you at all.  This is just the beginning of what a foreclosure can do.  A short sale will alleviate much of this.  For example, a short sale will not show up on your credit history and it will only assess as little as 50 points on your credit report.  A foreclosure should be a last resort!!

For more information, please contact me at info@buytampafl.com

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Tags: foreclosure, pre foreclosure, short sale, Tampa Real Estate