If you’re buying a home listed as a short sale in Midland, how long will the process take? This guide explains how long short sales take and why they’re called that – plus what you need to know before you dive in with both feet.
How Long Does a Short Sale Take?
First things first: You need to know what a short sale is. A short sale occurs when a seller can’t afford or doesn’t want to continue making house payments to their lender; as a result, the seller asks the lender to accept less than what they owe in an effort to avoid foreclosure. A seller can only market a house as a short sale if the lender agrees – the lender must agree to accept a lower price to satisfy the debt. That’s why short sales are named that way; they’re “shorting” the lender some of its money.
Short sales can take up to 6 months to be approved.
Related: Least expensive houses for sale in Midland, TX
Are Short Sales Fast?
Short sales are not fast – at least, not when compared to other types of home sales. In fact, short sales typically take longer to complete than a standard real estate transaction does. That’s because the lender is involved in the process; the lender must approve the price and conditions of the sale. (The home technically belongs to the lender, not the seller, so the lender has the right to decide on the price it’s willing to accept.) There’s also quite a bit of paperwork involved in a short sale.
Related: Do you need mortgage preapproval before you make an offer?
Short Sales: As-Is Transactions
Usually, short sales are “as-is” transactions. That means what you see is what you get; neither the seller nor the lender is going to make any improvements or concessions to make it a more desirable buy for the buyer.
Pro Tip: If you buy a short sale, find out whether the seller is behind on homeowners association dues, as well. When you buy the home, you may be on the hook for those past-due fees; lenders may not cover them.
Making an Offer on a Short Sale
Your Midland REALTOR® will help you put together the best possible offer on a short sale you’re interested in. Your agent will include:
- Your preapproval letter
- A copy of your earnest money check
- A copy of an appraisal on the home
- A copy of the home inspection report, if appropriate
Your REALTOR will find out what other paperwork is necessary and submit it. The seller’s agent will be hard at work, too, putting together the seller’s end of the packet.
But then, you wait.
The wait can be several months long. The lender has to review the entire file and then decide whether to accept what you’re offering for the home. The key is remaining patient; your real estate agent will check in frequently with the seller’s agent, who is responsible for keeping in touch with the lender.
Related: The most accurate home value website
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