Have you explored the idea of buying a short sale property but nixed it because of the time and stress involved? If so, then you should take advantage of the lesser known strategy of purchasing an APPROVED short sale home in Northern Colorado (Fort Collins, Loveland, Windsor). With an Approved short sale purchase, it’s possible to get a smoking deal without expending an inordinate amount of energy, so please read on!
To refresh our memory, a short sale is a property that is being sold by its owner for less than their mortgage amount. Typically, these owners are in financial distress and need their mortgage lender’s approval to “short” their loan payoff. At the closing table, the bank gets less than what the owner borrowed. Thus, the term, “short sale.”
So how does a property’s status become an Approved short sale? Well it begins when a buyer’s contract offer rises to the “top of the pile,” in the bank’s automated system after 4-5 months of processing, and a response to that offer is produced. Then, instead of the offer being agreed upon, the deal falls apart. Two of the most typical reasons for the deal failure are: 1) buyer got tired of waiting and refuses to purchase, or 2) Bank counters the buyer’s offer with price or terms unacceptable to buyer. There you have it! You take one distressed seller, add a bank response letter and subtract a balking buyer, and the Approved short sale opportunity is created! The home goes back on the market to wait for buyer #2, with its new designation as an Approved short sale listing.
This is where the savvy, 2nd buyer (you), comes in!
The advantages to you, Savvy 2nd Buyer, is a sharply reduced wait time, a known purchase price and a motivated seller and bank. So ask an experienced agent to start sending you the approved short sales listings in your price range and town(s). They trickle in at a slower rate than the unapproved short sales, but if you are pre-qualified and ready to go, you can snap one up and close within 60 days or so.
As with all short sales, nothing is written in stone. That’s why having representation from an experienced agent is key. Real estate agents in theNorthern Coloradoarea vary widely in distressed property experience and education. Finding an agent with their Certified Distressed Property Expert designation is a good idea. You want someone who will negotiate the deal expertly and coach you through the transaction. Happy Hunting!
Cathy Harris – 970-691-0368
e-Pro, CDPE, GRI