Avoid these Errors when Buying a Short Sale

Short sales can be a fantastic deal for buyers – especially in areas where inventory is low (like Denver!) While they can take a bit longer than tradition sales, the process isn’t all that different or more challenging than purchasing any other property – if you avoid common mistakes. Below are a few things you’ll want to avoid as you’re searching for a short sale that meets your needs.

From series photographed for Brand at 86 Carlton St, Carlton VIC - February 19th 2015.

  1. Ignoring property problems – Short sales are often lived in – as opposed to foreclosures, which are typically vacant – but if a homeowner can no longer afford mortgage payments, they likely could not afford to address necessary repairs that popped up over the years. If you see or suspect problems, don’t ignore them. It’s important to be realistic and know that if a home has too many problems that will be too costly to fix, it’s probably not the right choice for you.
  2. Skipping an inspection –Cosmetic problems are easy to identify and fix; however, there may be unseen problems in the short sale you’re considering. You’ll want to hire and experienced inspector to check out the property before you sign on the dotted line. You’ll have to pay for the inspection, but it’s truly a small price when you consider the costly problems that may be lurking below the surface.
  1. Having a tight timeframe – Despite their name, short sales can and do typically take a bit longer than traditional sales. It may be a few extra days, weeks or month, depending on the property and lender. The short seller’s lender must grant approval of either foreclosure terms or a short sale price that is less than the seller owes. This can take a bit of time, so remember to be patient.

Even though they can take a little longer, due to their lower price points, short sales can be an ideal choice for many buyers. Interested in seeing short sale properties available in the metro area? Give us shout – we’d love to help.

Ken Blevins

About Ken Blevins

Ken Blevins, CEO of Metrowest Real Estate Services, is a veteran in mortgage and default servicing with more than 24 years of experience in collections, foreclosure/bankruptcy, loss mitigation and real estate disposition (REO). Blevins was an original co-founder of Metrowest in 2003, a Real Estate Brokerage and Services Company focused on the resale, recovery and liquidation of distressed real estate in Denver, Colorado and surrounding metros. Blevins assumed the role of CEO in January 2014 and provides strategic direction and has management accountability for the day-to-day operations. Under his direction, Blevins drives all default management operations to maximize asset value recovery and reduce loss severity through a strategy focused on customer service and state of the art technology. Blevins has 18 years of direct operational experience in all facets of REO Asset Management having managed large national REO Disposition contracts for Fannie Mae, Freddie Mac, Wells Fargo, JP Morgan Chase, CitiFinancial, GMAC Mortgage and other various financial institutions. Blevins specialties include REO asset management, real estate investment, bulk REO acquisitions and distressed asset recovery and liquidation, and he has directed the resolution and liquidation of over ten billion in institutionally-owned residential real estate.
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