When looking in Pensacola for homes for sale, don’t overlook Short Sales. Although the term “Short Sale” has become a familiar term in the real estate industry, it is still new to many buyers. Buyers that have not heard the term short sale need to be educated to the meaning, process and time it takes to purchase a home through a short sale process. Not all buyers are a good match for a short sale. First of all, short sales take time to process. Some short sales take months to get from contract acceptance to the closing table. A record closing time for us was 8 weeks. Trust me when I say that time frame is not typical. The typical short sale will take 12 weeks at least and more often than not even longer. We had one take 8 months to close.
When I said that short sales are not for all buyers, I meant it. If you are a buyer that has a limited time frame before you have to occupy the home you are purchasing, then do not waste your time on a short sale. If you do not have patience enough to wait the extended time frame, then do not waste your time. Some buyers in these situations try to purchase a short sale and become frustrated and angry at the process (or the lack of a process) and have to rush to find a home and settle on one that maybe originally might not even have been considered. We try to educate or buyers on what it takes to purchase a short sale home and most of the time they make the right decision. Some however, have to test the waters.
Ideal Buyers for a Short Sale Homes
The ideal buyer for a short sale is an investor our buyer that has the luxury of time. There are some really good deals out there in short sale homes. Most investors are not in a rush to purchase an investment property so they are usually the ones who are more suited for short sales. There are some owner/occupants that are in a good situation and are not forced to purchase a home in a limited time frame. For those buyers, short sales are also ideal for them also.
Caution when Buying a Short Sale Home
Unlike in a normal home buying transaction, the buyers are not really dealing with the owners. The buyers are dealing with the bank or mortgage company that holds the mortgage. The home owners do have to approve the terms of the sale, but most of the negotiations will be with the mortgage holder. Most mortgages are not held by local/small banks. The smaller banks sell the mortgages in the secondary market and are bought up by the big national banks or mortgage companies. This means that most short sales are going to be processed through a short sale process center that is not going to be easily contacted. The process centers are processing thousands of short sales from around the country and your short sale is just another file in the computer. The processor of the short sale will usually not pick up the phone on the first ring. Voicemail is the typical answer. Email is also slow in return.
There are different divisions within some short sale process centers. Once you think that you have a point of contact, the process is handed off to another processor. This is frustrating for agents who are working behind the scenes to get the transaction to the closing table. Most short sale processes will have issues and when agents are unable to speak to the processor to get clarification the process slows even more.
Buying a home through a short sale process is sometime difficult, but a little time now, for those that can wait, can mean smaller mortgage payments for the next 30 years.
Contact Us for more information on short sales.