Valencia, Stevenson Ranch, Saugus, Canyon Country and Santa Clarita Foreclosure Buyers Must Read

I am faced daily with questions by the buyers and buyers' agents on the short sale process. It is important for me as a listing agent to educate the involved parties on the process and different challenges we may encounter as we move forward. Managing expectation is a must.

If you're a seller in need of a short sale or a buyer wanting to purchase a short sale- make sure you hire an agent who is educated in the short sale process. I find myself coming across a lot of agents who can't answer the standard questions regarding short sales. This indicates to me that: (1) The seller's agent doesn't really know the process of a short sale, (2) Because of the lack of knowledge regarding the short sale process, the process can take a lot longer then the standard 2-3 months, (3) The seller & seller's agent need to understand once the first offer is accepted & the contract is ratified all other offers are backup offers, (4) Buyer's & buyer agents who submit multiple offers on short sales are clogging the system and delaying the process for committed buyers.

Santa Clarita Certified Distressed Property Experts

Here's what buyers must understand if they want to purchase a short sale.

Be Patient. If you need to move in immediately, this is not the one for you. The lender will take their time to review the short sale package and it is similar to a Co-Op board package, it can take anywhere from 90 days to 180 days from offer + short sale package submission to close.

MAYBE Deals but not Steals. If you plan to make an offer, please present your best and highest offer. Lenders are absorbing the loss of this property, therefore the lender will want to minimize as much loss as possible. The BPO (Broker Price Opinion) or appraisal will show the lenders the most recent market comparables, the lender will want a price as close to fair market value as possible.

Best and Highest offer. Short Sale processors at the bank that have a lot of cases to work on and documents to look and work through. Our Offer is only one of a million, so making their work easy is the key to Successful Short Sale Transaction. As a Short Sale listing agent, I will price the property according to the recent comps. This will put the seller in a position where the sale price is not the reason that we do not receive an approval. As a Realtor representing the buyers, I'll submit an offer as close to Fair Market Value to avoid the lender from countering the offer. Buyers agents need to know their clients purchasing power and guide their clients to homes they can afford. The lender will rather say YES then pay the expense associated with foreclosure, lenders like certainty, not maybes.

Cash MAYBE be the king. If you are an all cash offer, which most of our short sales buyers are. That is a plus. However, the lender are looking to absorb as little loss as possible, so just because the offer is all cash with no mortgage contingency, it does not mean that you will be approved compare to other higher offers that needs financing. Price is the most important concern for the lender.

We are Real Estate agents under one of the most successful California Brokerage firms, Keller Williams VIP Properties, with extensive market knowledge. In addition, we have the confidence and success rate in completing short sales transaction.

If you are an owner that is considering a short sale and are already behind your mortgage payment, call us today at (661)290-3837 or email us at gary@garyricco.com for a confidential consultation. You can also email me, if your looking for information on how to purchase a short sale.