What Should I Expect When I Buy?

Short sales often look like other listings in the MLS, except they may have a lower asking price than comparable properties.
 The term "short sale" is a bit of a misnomer, though, as this type of transaction can take much longer to complete than a standard home sale.
 The buying process is similar to a standard purchase. You still apply for financing the same way, and order inspections the same way, for instance. But complications in the selling process aren't uncommon, and you'll need patience.
 The good news, though, is that times have changed. Many banks have streamlined their processes for short sales, making it much simpler and less time-consuming for buyers and sellers. Market data shows that the time it takes to close a short sale has steadily decreased over the past few years.
Possible short sale hurdles I can help you navigate:

Second mortgages: These can pose problems because a second lender may not agree to the terms set between the primary lender and the seller.

Mortgage insurance: If the seller has mortgage insurance on their loan, the mortgage insurance company will need to approve the short sale.

Other liens on the property: A lien is a claim by an outside person or company on a property for money owed. Liens pose hurdles whether the transaction is a short sale or not, and will have to be addressed before the property can be transferred to a new owner.

Government-backed loans: If the home seller's loan was a government-backed loan, such as an FHA loan, this can cause delays and hurdles because the government will need to be involved in approvals.

HOAs: HOAs can present complications because the lender might not pay fees associated with the HOA transfer from the seller to the new owner.

 
The Short Sale Buyer's Checklist

·          Get pre-qualified for a mortgage.
·         Get a home inspection, but understand that most lenders will sell only "as is." The inspection can help you decide whether the short sale price is reasonable, given the cost of repairs needed.
·         Understand who is paying the agent's commission and whether you have to make up any differences to your agent.
·         Submit documentation to the lender.
·         Have plenty of patience but balance it with persistence. Keep in mind that banks have grown much better at processing short sales, which is good news for you.

 

Get In Touch

Local Expert Updates

Greg Sheeler

Cell: 712.330.1573

Will Kretsinger

Cell: 712.301.4040

Brooke Jones

Cell: 641.420.2172

Aaron Jones

Cell: 712.320.9442

Community Updates

Smack Shack

Smack Shack in Okoboji

Get your taste buds ready for some smashing good sandwiches! The Smack Shack offers some amazing gourmet sandwiches. Every menu item is brilliantly created by chef Jeremy Neppl. I love the smack burger myself, as well as the spicy fried chicken thigh sandwich. I really don't think you can go wrong ordering here, they even have PB&J options for...  the kiddos. Make sure to stop by and try the Smack Shack located next to the Okoboji Commons.  Show More

Real Estate and MLS Homes For Sale in Okoboji

Big Spirit Lake, Small Town Feel

Big Spirit Lake, Small Town Feel in Big Spirit Lake

Separated from the rest of the Iowa Great Lakes, Big Spirit has a lot to offer. Big Spirit is actually located in Iowa and in Minnesota. This quiet setting offers a number of different lake views as well as access to fantastic fishing. While your are there, stop at the Spirit Lake Fish Hatchery. Every year they use gillnetting to catch and release ... walleye, muskie and pike using each fish to help breed a new batch of fish for the year. Often times the DNR catches very large fish and put them on display in one of their many fish tanks. The DNR professionals harvest fish eggs and release them after they hatch. Stop by and see the in the Spring, you will not be disappointed.  Show More

Real Estate and MLS Homes For Sale in Big Spirit Lake

Silver Lake

Silver Lake in Lake Park

Silver Lake in Lake Park is a 1,000 acre lake with an average depth of about 6.5ft and a maximum depth of about 10ft. Silver Lake offers some of the best walleye fishing in the IGL's, especially in the spring and fall. The shoreline been developed with some beautiful homes, especially in South Shore Estates and West Bay Estates. Silver Lake is a w... onderful spot so escape the hustle and bustle of other area lakes. It is a great lake to learn various water sports, as you won't encounter near the boat traffic. Do yourself a favor, and check out all that Silver Lake has to offer.  Show More

Real Estate and MLS Homes For Sale in Lake Park

Subscribe To Our Newsletter