Things You Probably Don't Know About Short Sales

As most people know, short sales and foreclosures (REO's) make up a very big percentage of the homes on the market for sale now days. Many people have a general idea of what a short sale is and the process involved. The problem with most things in life is that a little knowledge is sometimes very dangerous. Although there are some home buyers and sellers that are extremely well versed on the short sale process, the majority of them are not. Going into a short sale with a Realtor with limited knowledge on the the process can potentially cause a great deal of heart ache for all of those involved.

Below is a an email that Bank of America sent me to provide to my clients that will give them a much better insight into to many things that are never mentioned. Although every bank doing a short sale has their own guidelines with the way they do things and you should seek a real estate attorney when involved in a short sale, the information below will give you a much better understanding than the vast majority of people.

Fact #1: Your acceptance of the counter offer terms does not mean the transaction is approved. Acceptance of the counter offer means that Bank of America will take the next step of presenting the transaction for approval to the investor. In some short sales, multiple approvals may be necessary from others including the second lien holder, mortgage insurer and Bank of America senior management.

Fact #2: The terms of the accepted counter offer may be approved, declined or changed. Any of the parties reviewing the transaction can change the terms of the transaction, approve or decline it, up until closing.

Fact #3: The counter offer may have an expiration date. Please reply to the counter offer before the expiration date. If you don't reply by the expiration date the transaction will be rejected and you must restart the process by initiating the short sale and resubmitting documents, which can add up to an additional six months to the process.

As always, make sure to use a Realtor that is very familiar with the process and pros and cons of purchasing distressed property. And never be afraid to ask questions upfront.


Amit Bhuta
Real Estate Helper
Kendall Village Homes
(305) 439-3031
www.DadeCountyMLS.com
www.google.com/profiles/avbhuta