What Should I Expect When I Buy?

Short sales often look like other listings in the MLS, except they may have a lower asking price than comparable properties.
 The term "short sale" is a bit of a misnomer, though, as this type of transaction can take much longer to complete than a standard home sale.
 The buying process is similar to a standard purchase. You still apply for financing the same way, and order inspections the same way, for instance. But complications in the selling process aren't uncommon, and you'll need patience.
 The good news, though, is that times have changed. Many banks have streamlined their processes for short sales, making it much simpler and less time-consuming for buyers and sellers. Market data shows that the time it takes to close a short sale has steadily decreased over the past few years.
Possible short sale hurdles I can help you navigate:

Second mortgages: These can pose problems because a second lender may not agree to the terms set between the primary lender and the seller.

Mortgage insurance: If the seller has mortgage insurance on their loan, the mortgage insurance company will need to approve the short sale.

Other liens on the property: A lien is a claim by an outside person or company on a property for money owed. Liens pose hurdles whether the transaction is a short sale or not, and will have to be addressed before the property can be transferred to a new owner.

Government-backed loans: If the home seller's loan was a government-backed loan, such as an FHA loan, this can cause delays and hurdles because the government will need to be involved in approvals.

HOAs: HOAs can present complications because the lender might not pay fees associated with the HOA transfer from the seller to the new owner.

 
The Short Sale Buyer's Checklist

·          Get pre-qualified for a mortgage.
·         Get a home inspection, but understand that most lenders will sell only "as is." The inspection can help you decide whether the short sale price is reasonable, given the cost of repairs needed.
·         Understand who is paying the agent's commission and whether you have to make up any differences to your agent.
·         Submit documentation to the lender.
·         Have plenty of patience but balance it with persistence. Keep in mind that banks have grown much better at processing short sales, which is good news for you.

 

Get In Touch

Local Expert Updates

Greg Sheeler

Cell: 712.330.1573

Brooke Jones

Cell: 641.420.2172

Matt Lippon

Cell: 712.330.0604

Janie Eick

Cell: 712.339.0574

Community Updates

The Family Diner

The Family Diner in Spirit Lake

The Family Diner is Spirit Lake, IA is a local favorite! They offer up a large portion for small money, but whether you come early or late you may be in for a wait. With homemade bread and the largest sausage patty you have seen, The Family Diner is consistently delicious. They are open only for breakfast and lunch and closed two days a week. In my former career at Stylecraft, the family diner was definately a favorite when our friends would visit from North Carolina. They were always inpressed with the bread and rolls and corn beef hash.

Real Estate and MLS Homes For Sale in Spirit Lake Find more about Spirit Lake Learn More Here

Euphoria Salon

Euphoria Salon in Okoboji

Heather Carson, the owner of Euphoria Salon does an amazing job. You will be blown away with not only the services they offer but the salon it's self. She did an amazing job making you feel like your in a big city salon right here in Okoboji.

Real Estate and MLS Homes For Sale in Okoboji Find more about Okoboji Learn More Here

Okoboji Store

Okoboji Store in Okoboji

Bringing back the old Okoboji general store from 1884, the Okoboji Store has made a huge name for itself since it opened in 2015. The Okoboji Store is nearly always busy, thanks to their amazing food and drinks. They serve breakfast, lunch, and dinner, during the summer and fall. The restaurant also hosts some of the areas best live musicians, which is always a great time. But, the best part of the Okoboji Store is of course, the view of the lake. Its beautiful location is sure to keep anyone coming back for more.

Real Estate and MLS Homes For Sale in Okoboji Find more about Okoboji Learn More Here

Subscribe To Our Newsletter