I'm hearing that short sell deals are most of the time a bargain since you are getting the property as less than the current loan balance. It looks like the only drawback is the approval process that need the lenders to approve the deals.
I saw one short sell in my area and I wonder if any of you have already found a bad short sell deals ? If yes, I would really appreciate to read your story.
Investor · Clairemont, CA · Member since 2011 · 3k+ posts · 2k+ votes
2y
What do you mean bad short sale? A short sale is just a sale but the lender is agreeing to take less than they are owed. Obviously that typically comes with distress, but any distressed sale is similar. You buy a problem to get a discount. There's really nothing unique to a short sale's distress, you just need a third party to approve of the transaction...
Real Estate Broker · San Diego, CA · Member since 2016 · 187 posts · 117 votes
2y
Short sales take a very, very long time to close. Not only do you have to get the seller to agree to P.P and terms. You have to get the bank to agree as well. Waiting for the approval from the bank is what takes a very long time.
The home could be in good condition. You just need to ask yourself is it worth waiting 3, 6 in some cases 12 months to get an answer from the bank.
If you have the capital and the time to wait, go for it. The other option is find a home that's not a short sale.
Short sales take a very, very long time to close. Not only do you have to get the seller to agree to P.P and terms. You have to get the bank to agree as well. Waiting for the approval from the bank is what takes a very long time.
The home could be in good condition. You just need to ask yourself is it worth waiting 3, 6 in some cases 12 months to get an answer from the bank.
If you have the capital and the time to wait, go for it. The other option is find a home that's not a short sale.
Thanks, Tony.
Not really worth it and not sure my agent will follow on that.