Header Image

What Should I Expect When I Buy?

Short sales often look like other listings in the MLS, except they may have a lower asking price than comparable properties.

The term "short sale" is a bit of a misnomer, though, as this type of transaction can take much longer to complete than a standard home sale.

The buying process is similar to a standard purchase. You still apply for financing the same way, and order inspections the same way, for instance. But complications in the selling process aren't uncommon, and you'll need patience.

The good news, though, is that times have changed. Many banks have streamlined their processes for short sales, making it much simpler and less time consuming for buyers and sellers. Market data shows that the time it takes to close a short sale has steadily decreased over the past few years.

Possible short sale hurdles I can help you navigate:


Second mortgages: These can pose problems because a second lender may not agree to the terms set between the primary lender and the seller.

Mortgage insurance: If the seller has mortgage insurance on their loan, the mortgage insurance company will need to approve the short sale.

Other liens on the property: A lien is a claim by an outside person or company on a property for money owed. Liens pose hurdles whether the transaction is a short sale or not, and will have to be addressed before the property can be transferred to a new owner.

Government-backed loans: If the home seller's loan was a government-backed loan, such as an FHA loan, this can cause delays and hurdles because the government will need to be involved in approvals.

HOAs: HOAs can present complications because the lender might not pay fees associated with the HOA transfer from the seller to the new owner.


The Short Sale Buyer's Checklist


  •   Get prequalified for a mortgage.
  •  Get a home inspection, but understand that most lenders will sell only "as is." The inspection can help you decide whether the short sale price is reasonable, given the cost of repairs needed.
  •  Understand who is paying the agent's commission and whether you have to make up any differences to your agent.
  •  Submit documentation to the lender.
  •  Have plenty of patience, but balance it with persistence. Keep in mind that banks have grown much better at processing short sales, which is good news for you.

GET IN TOUCH

Local Expert Updates

Aaron Jones

Cell: 123.475.4564

Janie Eick

Cell: 712.339.0574

Community Updates

Sunset Travel Agency

Sunset Travel Agency in Milford

Start planning now for all of your fall and winter getaways. We are specialists in all inclusives, cruises, family reunions, honeymoons and destination weddings. In specific areas we are specialists in Mexico, Disney, cruises and hotels. You can have confidence is Sunset Travel Agency with over 35 years of experience in the travel industry.

Arrowood Resort

Arrowood Resort in Okoboji

Arrowood is a year-round conference center and hotel with over 100 guest rooms, whirlpool suites and a "Great Room" for hosting group events and hospitality suites. Formerly known as Village East, the resort offers an outdoor pool, deck, playground, volleyball and croquet courts and a heated indoor pool area. Hotel goers can also enjoy an on-site salon, Minervas Bar and Eatery and lit parking. Located on Brooks National Golf Course, Arrowwood Resort offers some of the finest lodging around. Years ago, Brooks Golf Course clubhouse was actually housed on the rear side of Arrowood, but since then, the course has been converted to 27 holes with a a new separate clubhouse. Also, the Racquet Club was a part of the facility, offering workout facilities, racquet ball, and tennis. However, with the addition of the YMCA, the racquet club was unsustainable and converted into retail.

EAST Algona

Real Estate and MLS Homes For Sale in Lakes Agent Insight Description of East Lake Rush Lake in the Lake Section of the Area Category.

Subscribe To Our Newsletter

The newsletter is sent periodically and will update you on the latest real estate news and offers.