Only certain types of home buyers truly can consider Short Sales. First, you need to have patience and flexibility! You need to be pre-approved to close within 30 to 45 days (typical closing times in Charlotte NC and our surrounding areas) in addition to being able to wait for 4 months until you have the 30 to 45 day deadline begin. The bank decides when this time line begins. What??
When you place an offer for a short sale, the current lender begins their research. They must consider the current real estate market value in addition to the current trend. How stable is the current market value? The current lender must then approach the owners of the loan (the person who receives your monthly payment is typically only a middleman) and get their agreement. Is their one or two mortgages? How many investors are their on this specific home (who actually owns the mortgage). This is always a bit more complicated than would appear and always takes longer than the current owner or the new buyer anticipates.
On a typical sale, the owner will have an answer the following day, a bank owned home typically will respond within 3 days. A Short Sale will take months.
You, the new buyer must be ready to move quickly. If you currently have a lease, it needs to be month to month. If you are staying with someone else, your host must be patient.
Keep in mind, in four months the bank may come back and reject your offer. You then must decide if it is worth it to proceed on this "potential" short sale or to move on. How patient are you?
My suggestion is to only place an offer on a short sale if it is your dream home. If it is "OK" then you will more than likely find a more suitable home within the next four months. This is typically why most short sales are not completed. When you are ready to buy a home, a four plus month wait can seem like an eternity. Only your dream home, at the dream price will be worth it.
I have personally closed many short sales and also have seen many not close. My experience has taught me when to write a short sale offer and when it is not right for the buyer. Give me a call if you are considering a short sale. Before considering a short sale you need to be confident your Realtor is overseeing the process and looking out for you.