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

Matt Rogers

Cell: 712.330.0604

Janie Gilmore

Cell: 712.339.0574

Greg Harvey

Cell: 712.330.1573

Brooke Johnson

Cell: 641.420.2172

Community Updates

Main Street Bar & Grill

Main Street Bar and Grill is a longstanding bar/pub/lounge that also has a great selection of food. Wednesday nights they offer a wonderful steak menu. Great cocktails and great food in small-town Terril, Iowa.

Real Estate and MLS Homes For Sale in Terril

About Terril

Beware the (I'll get your home sold in a week) agent

I hear this one all the time from prospects looking to list their house. "Well, agent xyz told us that if we listed with her, she'd have it sold in a week." This would fall into the category of "If it sounds too good to be true, the probably is." The majority of agents are not going to make this claim, but rather will give you an honest market an... Show More

About The "Real" Estate Blog Learn More

Jimmy John's

We slice our all-natural meats and fresh veggies in-house every day. Our fresh-baked bread is made right here where you can see it, and our house-made tuna salad is fresh every day. The flavor of a ripe tomato, crisp shredded lettuce, combined with fresh-baked bread, fresh-sliced meat and real Hellmann's mayo - that's when the magic happens. Made w... Show More