Articles - Archived Expert Advice

Purchasing a Short Sale

I've found the perfect house for my family listed as a short sale. I've heard these can take a long time to process? Why is this, and should I consider other options?

First, congratulations on the possibility of buying a home for your family. Buying a home can be one of the most exciting times in your life, but it can also be one of the most complicated if you don't fully understand the process. To answer your question as to why short sales can take so long to process, there are a few things to consider.

A short sale means a mortgage lender has allowed the homeowner to sell their home for less than what is owed so they can avoid foreclosure. In these cases, the lender has to approve the sale. As a buyer, that means your offer is made to the lender rather than the homeowner—and they may not accept it.

The time it takes to hear a response can vary. Because the goal is to sell the home as quickly as possible, the below-market asking price means there may be a lot of offers for the seller to sort through. However, there are cases where homebuyers zip through the process without delays.

As far as considering other options, it depends on how long you are willing to wait, as well as the reasons that create the delay. But keep in mind, you could save a lot of money through this process. On average, homes listed as short sales are sold for less than market value. If you have the patience and flexibility of waiting, the result could benefit you to the tune of thousands.

If you would like to talk with one of our experts to discuss your situation in detail, we welcome your phone call at 877.367.5428. Good luck!