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.

 

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Local Expert Updates

Aaron Jones

Cell: 234.234.2342

Greg Harvey

Cell: 712.330.1573

Matt Rogers

Cell: 712.330.0604

Brooke Johnson

Cell: 641.420.2172

Community Updates

"Turn-Over" Thermocline

Referred to locally as the lake turning over the thermocline is a feature of lakes with deep water. The water on the top of the lake changes temperature much more variably during the year. On West Lake, it can reach as much as 75 degrees in July while the water below, greater than 35 or 40 feet deep is relatively stable around 45 degrees. In the fall and early winter, the top strata of the lake will cool to below 45 degrees, and then because it becomes denser, it will "sink" below the lower strata, thus, displacing it and making the lake "turn-over". In the deepest part of West Lake (near the 136ft mark), no light is availble, and hence little life is known whether fish or plant. Typically questions are raised as to why the surface water gets dirty for a short period of time in the fall, this this is the standard answer.

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Winther Stave & Co in Spencer

At Winther, Stave & Co., LLP we use a team approach. You have a team of accounting professionals at your disposal, not just one person. With specialists in many different areas, we can draw on that breadth of knowledge and experience to help with services ranging from taxes, to payroll, to wealth preservation.

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At Winther, Stave & Co., LLP we use a team approach. You have a team of accounting professionals at your disposal, not just one person. With specialists in many different areas, we can draw on that breadth of knowledge and experience to help with services ranging from taxes, to payroll, to wealth preservation.

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