POSSIBLE SHORT SALE?? Making an Offer on a Short Sale? What You Need to Know

Are you looking to buy a new home? Are you thinking that now's a great time to find bargains? Before you make an offer, it pays to know a little about the seller's situation.  Buyers!!! Looking for a deal?  Have I got one for you in the St. Charles, MO Area.  This home is worth more than asking price.  See Market Snapshot for value http://www.cribbinrealty.com/market-snapshot-2.html.

This eye catching 4 Bed 2.5 Bath home, located in a quiet cul-de-sac, is ready to be yours! Features include refinished 3/4 Bruce Oak floors in the Kitchen & Breakfast room, center island w/breakfast bar, upgrade white cabinets w/newer hardware, Kitchen pantry, Bay window w/door leading to the spacious 20x12 restained deck, & a main floor laundry. The open Family room includes a Forshaw gas fireplace w/white mantle & moulding & marble hearth. The 16x14 Master bedroom suite has a vaulted ceiling w/wood beam & ceiling fan, sky light in the Master bath, walk-in closet, upgrade vanity cabinets, & separate tub & shower. This homes' LL walkout basement is ready for finishing & includes a full rough-in bath & plenty of space for storage. The exterior of this home features a level lot, beautifully landscaped & maintained yard w/white vinyl fencing surrounding the back of the home and a custom built swingset in the backyard. THIS HOME IS A MUST SEE!!

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If a home is being sold for below what the current seller owes on the property—and the seller does not have other funds to make up the difference at closing—the sale is considered a short sale.


A short sale is different from a foreclosure, which is when the seller's lender has taken title of the home and is selling it directly. Homeowners often try to accomplish a short sale in order to avoid foreclosure. But a short sale holds many potential pitfalls for buyers. Know the risks before you pursue a short-sale purchase.

You're a good candidate for a short-sale purchase if:

You're very patient. Even after you come to agreement with the seller to buy a short-sale property, the seller’s lender (or lenders, if there is more than one mortgage) has to approve the sale before you can close. When there is only one mortgage, short-sale experts say lender approval typically takes about two months. If there is more than one mortgage with different lenders, it can take four months or longer for the lenders to approve the sale. The above case does have 2 lenders.

If you have a home to sell before you can close on the purchase of the short-sale property—or you need to be in your new home by a certain time—a short sale may not be for you. Lenders like no-contingency offers and flexible closing terms.

Only about two out of five short sales are approved by lenders.
You may have a close friend or relative in real estate, but if that person doesn’t know anything about short sales, working with him or her may hurt your chances of a successful closing.
 It’s a good idea to have a title officer do an initial title search on a short-sale property to see all the liens attached to the property. If there are multiple lien holders (e.g., second or third mortgage or lines of credit, real estate tax lien, mechanic’s lien, homeowners association lien, etc.), it's much tougher to get that short sale contract to the closing table. Any of the lien holders could put a kink in the process even after you’ve waited for months for lender approval.

Lenders want to minimize their losses as much as possible. If you make an offer tremendously lower than the fair market value of the home, chances are that your offer will be rejected and you’ll have wasted months.
Even when a lender approves a short sale, it could require that the sellers sign a promissory note to repay the deficient amount of the loan, which may not be acceptable to some financially desperate sellers. In that case, the sellers may refuse to go through with the short sale. Lenders also can change any of the terms of the contract that you’ve already negotiated, which may not be agreeable to you.

You will most likely be asked to take the property “as is.” Lenders are already taking a loss on the property and may not agree to requests for repair credits.

The risks of a short sale are considerable. But if you have the time, patience, and iron will to see it through, a short sale can be a win-win for you and the sellers.

For any of your Real Estate Questions or Needs call Me at 636-294-6061 or Mike@cribbinrealty.com Remember “Cribbin Realty” Where Performance Outsells Promises.

Note: This article provides general information only. Information is not provided as advice for a specific matter. Laws vary from state to state. For advice on a specific matter, consult your attorney or CPA.

Article information taken from Realtor Magazine Online.

Complete article can be found at: http://www.realtor.org/rmosales_and_marketing/handoutsforcustomers/handouts/short+sales+tips+for+buyers