If You Are Considering A Short Sale In The Palmer or Wasilla Area, Keep These Things In Mind

By lheraty | Published: January 17, 2009
Other descriptions for short sale listings might be described with the phrases ”subject to bank approval” or “subject to lien-holder approval” or “as-is”. Rarely will you see “short sale”, so it’s best to be armed with some crucial information about short sales before considering buying one.  I just completed my Certified Distressed Property Expert (CDPE) designation.  Working through the nuances of a short sale is not easy.  There are several crucial things to know if you want to go through the short sale process, have it be successful, and not pull your hair out along the way.  Contact me and I will be glad to walk you through this process. 
  • In this type of transaction there is an additional party involved besides the buyer and the seller; the bank, lien holder, and/or both. The bank(s) and/or lien holder must approve the sale, and this can make the time to close much longer than usual. Expect it to take anywhere from four to six weeks. And once the bank’s approval is granted, they will expect you to be ready to close as soon as possible.
  • You will need to pay for your own inspection, and since the sale is “as-is”, this means that typically no repairs will be done and there will be no closing cost credits for repairs.
  • You will also need to pay for your own appraisal. The bank will do their own as well, and have been known to reject the sale based on their appraisal. Also, they may ask the buyer to raise their offer before approving the sale.
  • These things are obvious risks to the potential buyer, as you could end up out of your inspection costs.  While there are no guarantees, I am a CDPE expert and will help you assess the risk involved with any property you are interested in that may be subject to a short sale. 
  • Deferred maintenance on the home is a potential risk for the buyer. Consider that since the mortgage payments were not being made, it’s highly likely that the homeowner was not able to afford regular home maintenance.  As a matter of fact, count on it.
Fore more information about short sales go to About.com or just call me at 373-3575 or email me.
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