Short Sale Purchase vs. Bank Owned
I recently acquired a client from a Realtor that was getting out of the business. They had put in an offer on a home that would be a short sale. (A short sale is a process where the seller and his agent try to talk the lender into taking less for the mortgage that what the seller owes.) The offer was made on April 25, 2008.
After 8 weeks we still hadn't heard anything regarding the offer from the bank. By June, my client was anxious to close on his new home and began to think that perhaps he should look at another home. However, we both thought it couldn't be too much longer, we'd just wait and see what the bank was going to do. It's now July 23, and my client and I have given up on it. We were out looking at vacant homes. (Vacant so we could close fast...and definitely not short sales!) When wouldn't you know, while we were looking at homes that morning, we got work that the bank would accept his offer. THREE MONTHS! Almost to the day. We're under contract and planning to close soon.
However, another client decided she'd like to purchase a bank owned home. We placed the offer last Friday. The bank agreed this Friday and we under contract and expect to close sooner than the short sale home.
Moral of the story: You'll need plenty of patience to make an offer on a short sale. However, if you need something quick, try a bank owned or real estate owned property. They can close even faster than a privately owned home.
School is starting back in a couple of weeks. Now is the best time to get moved into that new house. Interest rates are on the rise; you should move quickly.
To see all listings in the Pikes Peak Multiply Listing Service, go to: www.MarianneSnygg.com.
Marianne Snygg, GRI, ABR, ASP
ERA Herman Group Real Estate
Colorado Springs and Monument Real Estate