Kathy Foran - REALTY EXECUTIVES Boston West



Posted by Kathy Foran on 10/16/2016

You may think buying a short sale is a good deal and many times it can be a good option. Short sales can also be fraught with complications and often can easily fall apart. Here is a list of things to be aware of so your short sale doesn't become a long shot. • When a house is placed for sale as a short sale the owner doesn't always have the authority to sell the house at the advertised price. The owner hopes the bank will accept that price as a short sale. • The negotiating process is far different than a regular sale. You often will first negotiate with a seller but remember the bank has the final say-so. • You are making an offer to purchase blind because many lenders will not even discuss a short sale with a seller until a purchase contract is in place. There is no guarantee the lender will even accept a short-sale offer. • Short sales often are not short at all. They can be long, drawn-out affairs. Be prepared for it to take months. • Even though the lender may have taken their time on the short sale approval, once approved the lender often require the sale to close within a short period of time. Due to the way many short sales happen, a buyer may have to put out money for a home inspection, appraisal, credit report and application fees paid to their lender and the sale may not even happen. So while short sales can often be a good deal they can also be a long shot. Take your time, do your research and be sure to work with a real estate professional to help guide you through the potential pitfalls of a short sale.





Posted by Kathy Foran on 1/31/2016

Trying to navigate your way through a short sale can be tough. Knowing how short sales work and how to make the sale happen is important in surviving the short sale process. Along the way there will be a lot of myths to dispel about short sales.  Here are just a few short sale myths: Sellers think that a short sale is worse for their credit score than a foreclosure. When determining your FICO, the Fair Isaac Corporation treats a short sale and a foreclosure the same. Buyers think a short sale is a deal. In fact, short sales tend to sell for more than foreclosed homes. A short sale is difficult. If you use an experienced agent you should be able to survive a short sale. Most short sales are denied because of a misunderstanding of the process. If the short sale process is not followed correctly, there is a good chance of getting denied. If I short sale my house I won't be able to buy another home. This will depend on your credit, restrictions can vary from 2-3 years.  Some FHA programs allow for a purchase sooner than that, however the guidelines are fairly strict. A house that is already in foreclosure cannot be sold as a short sale. Not true, a foreclosure notice or notice of default does not mean that you do not have time to perform a short sale. Banks will sometimes even postpone a foreclosure for the short sale option. These are just a few of the common myths surrounding short sales. As always, use a professional real estate agent to help you navigate your way through a short sale.