Purchasing a short sale property can be a fantastic way to break into homeownership at a discounted price. It can be especially appealing in hot markets (like Denver), where inventory is low and demand is high. You may have heard that, despite their name, short sales can take an exceedingly long time. While this can sometimes be the case, it isn’t always. Read on to learn more about the short sale buying process and how long you can expect it to take.
The good news is that, on average, the short sale process doesn’t take as long as it once did. This is thanks to a variety of rules and procedures that have expedited the process. The bad news is that it can still be hard to predict how long the process might take, due the variables involved.
A short sale occurs when a homeowner sells a home for less than the amount owed on the mortgage loan. In simple terms, they are selling the house “short” of the outstanding balance. But homeowners can’t simply list their home for less than they owe; they need their lender’s permission, since the lender will be taking a loss on the deal. This is one of the reasons why a short sale takes longer than a regular transaction.
If your real estate agent submits a complete offer with all of the necessary paperwork, it is not unrealistic to get approval within 30 to 60 days, or sometimes even sooner. This is a great deal faster than in the past when short sales were nearly guaranteed to take three to four months.
Purchasing a short sale can be a great deal for buyers, but given the variables in each case, it may not be the best choice for buyers on a tight timeline. If you’re ready to check out short sale options in the Denver-metro area, give Metrowest a shout. Our agents specialize in this type of sale and would love to help you with the process!