Seller commitment is important to the buyer when purchasing a home listed as a short sale.
Short sale transactions are a significant portion of the housing market in Osceola and Orange County. MLS stats reveal that over 24% of the sales reported during 2010 for the two counties were listed with a short sale contingency. Purchasing a short sale can result in a buyer getting a good home at a good price however there are concerns and issues buyers should be aware of before making an offer on a home listed as a short sale.
Seller commitment
The transaction becomes increasingly difficult when the owner of the home is detached from the situation. In a short sale the owner is often involved in a distressed situation. They could be upside down on their mortgage, owing more on the home that it is currently worth. They may be behind on mortgage payments and facing foreclosure. Many of these owners have all but given up, even choosing to move out of the property. From a buyer’s point of view, without the seller’s cooperation and involvement, the short sale transaction can face numerous delays or even fail to close altogether.
The seller’s cooperation and involvement
Before making an offer on a home listed as a short sale, ask the listing agent several questions that will help you determine the owner’s level of interest in seeing the transaction through to a successful closing.
- Are they really interested in short selling their home or could they care less?
- Have they provided their listing agent all of the documents the lender will need to consider the short sale payoff?
- Will they keep the utilities on so that the buyer can complete their inspection of the home?
- Are they prepared to bring money to closing or sign a promissory note in order to satisfy the terms of a lender’s short sale approval?
Moving on
There are a number of sellers interested in avoiding foreclosure by selling their home subject to a short sale. Over 4,000 have closed so far during 2010. If the owner of a property is not very responsive to your questions and concerns now, it can only get worse during the transaction. Move on and find a home where the seller is willing to work with you in order for you to purchase their home.