Short sales are a very interesting aspect of our business. I would try but be prepared to wait for the bank. It might take extra time to close the deal. I wouldn't be afraid unless your buyers are in a tearing hurry. Short sales are a way to get a property for a little less then market value. I've been involved in a few. Ask the listing agent
- have you started negotiation- If it is already negotiated it will be easy.
- Make sure the price is realistic and not a teaser - I just showed a home that was listed at $199K but the bank wouldn't take less then $240K. I was pretty annoyed and might have lost the customer.
- Pull title early and make sure there are no liens - If they are make sure they are negotiated away
- Check tax liens - Those are much harder if not impossible to negotiate.
- Find out if the house is in foreclosure - You can ask the listing agent.
- Be prepared to wait.
- You will need a funding letter and/or proof of funds (for cash buyers)
- Do not let your client spend money until the bank approves the shortsale
- Make sure all dates of inspections etc are from bank approval not contract deadline
All this said it can be rewarding for both you and your client. Don't avoid them just be careful.
I love the challenge of a short sale it is a way to help people avoid worse credit problems. Call or Email me with any questions. www.debbieholmes.net.