Life in Big Canoe, Real Estate in the Mountains

Tonight I’m writing about a short Sale in Big Canoe. Along with the home I’m also going to point out the basics of a short sale and how it differs from  bank owned foreclosure. As always please feel free to call or email me with any questions.

Let’s start with the house. Please click on this link to see 3092 Falcon Heights , a short sale. Below are some pointers to purchasing a short sale.

• The term Short Sale simply means that if an offer comes in the bank holding the mortgage will consider taking a loss on the loan.
• Purchasing a short sale is anything but short. Be prepared to wait several weeks to even months for approval or a denial.
• The offer needs to come in clean with a short inspection period and no repairs. It’s OK to negotiate price but there us usually not a lot of negotiation room.
• Bank approvals would be helpful but due to the length of time it takes to close, your mortgage broker will usually extend the rate for 30 days.
• Any and ALL furnishings will need to be negotiated on a separate bill of contract, even if the price is nominal. Lenders are getting very tough with that.
• ALWAYS have an appraisal contingency! Crazy appraisals have been popping up all over the place. You are better off safe than sorry.  
• Be sure your agent calls regularly (every 3 days) to follow up on the offer. Some banks take their time getting the paperwork through and often LOSE  some of it due to a bad fax or scan.

Short sales are worth the wait but patience is truly a virtue. Remember, your agent (hopefully me) will want to push this through as quickly as possible, and will follow up frequently to ensure a smooth closing. When you apply  for the loan, you will need to be in close contact with your lender. Explain that you plan to purchase a short sale and ask them for advice as to when you need to lock in the loan. Happy house hunting!