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 pre-qualified 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

Janie Eick

Cell: 712.339.0574

Brooke Jones

Cell: 641.420.2172

Community Updates

Katy Lynn Boutique

Katy Lynn Boutique is a fabulous women's clothing store offering a wide variety of clothing, shoes, jewelry and more. Excellent customer service with all hands-on-deck in helping you find that special outfit. You can also place clothing orders online. A fun clothing store that is sure to impress!

Real Estate and MLS Homes For Sale in Arnolds Park

Find more about Arnolds Park Learn More Here

Riddle Me That

Riddle Me That is a brand new escape room in Arnolds Park. Its an awesome place to bring the family for a thrill, or the perfect team building activity for the office. The goal is to find clues, solve the mystery, and escape the room before the time runs out. Perfect for a rainy summer day, or just a day you need a little adventure in your life!

Real Estate and MLS Homes For Sale in Arnolds Park

Find more about Arnolds Park Learn More Here

Deli on the Ave

Serving fresh deli sandwiches, grilled paninis, salads, sweet treats, specialty coffee and much more! Feel free to dine in and enjoy the atmosphere this unique deli provides, or order and take out. Ordering online is also an option for take-out and they also do corporate box lunches. Serving gluten free as well! You will definitely want to check out Deli on the Ave!