Just updated: The Home Search now includes the option to choose Short Sale and Bank Owned properties in your search! Try it out at the bottom of the page.

Are you looking to buy a new home? Are you thinking that now's a great time to find bargains? If you find a home that 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. But a short sale holds many potential pitfalls for buyers. Know the risks before you pursue a short sale purchase.

 

What to consider:

• Have patience Even after you come to an 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..
  
• Have financing ready Lenders like cash offers. But even if you can't pay cash, its important to show you are well qualified and your financing is set. If you're preapproved, have a large down payment, and can close at any time, your offer will be viewed more favorably than that of a buyer whose financing is less secure.
  
• No contingencies If you have a home to sell before you can close on the purchase of the short sale property-or if 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..
  
• Potential rejection Lenders want to minimize their losses as much as possible. If you make an offer much lower than the fair market value of the home, chances are that your offer will be rejected and you'll have wasted months. Or the lender could make a counteroffer which will lengthen the process.
  
• Bad terms Even when a lender approves a short sale, it could require that the sellers sign a 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.
  
• No repairs or repair credits 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.
  

If you feel you are a good candidate for purchasing a short sale, we can help! We will show you short sale homes, check title and liens in advance, help negotiate the purchase, and smooth communications with the lender. Call us at 206-324-8900 or email us at contact@ginthner.com and we will send you more information. In the meantime, use the Home Search Button. You now have the ability to choose short sale or bank owned properties as part of your home search!