"Short-sale" seems to be a buzz word these days with many buyers going after short-sales because they think they can get a great deal. Yes, there is a chance you can get a great deal on a short-sale. But you must have a lot of patience and not be in a hurry to move.
Let me repeat...
You must have a lot of patience and not be in a hurry to move if you're trying to buy a short-sale.
Why must you have patience and a lot of time? Because the bank makes the final decision on whether your offer is approved and that process takes an average of 60 to 90 days. In some cases, it may take up to 6 months.
Why does it take so long? Because the first thing banks did when profits plummeted is cut staff. When you mix a huge increase in case files and a staffing cut of 50 percent or more, you get overworked and underpaid employees that care more about finding a new job than your offer.
I have to move into something in the next 30 to 45 days...should I consider short-sales? I wouldn't say that you should not go after a short-sale, but have "Plan B" in place so that you're not homeless come time to move. You may get extremely lucky and get a response in less than 60 to 90 days, but don't bank on it (pun intended).
Should I call the listing agent regularly to check up on the situation? If you consider "being patient" calling the listing agent every week asking whether they've heard a response, think again. By calling the listing agent over and over, all you're doing is annoying the agent. The listing agent is trying to sell the house as quickly and as much as you're trying to buy it. Trust me, the listing agent will call you the second they get a response from the bank.
Why doesn't the listing agent call the bank and hurry things along? (insert "bank" for "listing agent" in the above paragraph)
So remember...when it comes to short-sales, you must be patient and not be in a hurry to move. You have to understand that the process takes much longer than a traditional resale. And know that the listing agent is doing everything they can to make the process go as quickly as possible.
-Danilo
