What a Buyer Considering a Short Sale Should Know

A buyer purchasing a short sale can get a good deal because the lender who considering the short sale would prefer to sell the property at a discount than have to deal with the costs of a foreclosure.

The listed sales price is not necessarily any indication of what the bank may consider as an acceptable offer.

A buyer submitting a short offer needs to be patient! It's not a simple process and very few close within 60 days. The lender may take quite some time determining if they will accept, counter, or refuse an offer. (The bank may take 30 days or even 3 months to accept an offer.) Not all lenders handle a short sale in the same way. Some lenders are faced with many short sales to investigate and negotiate, and they my not have the staff or even a clear policy on how they are handled within their own company. The lender may ask to see other offers, requesting the property continue to be marketed for sale until they have accepted an offer.

A buyer submitting a short offer needs to be flexible! (And the lender/bank may not be!) Even once the lender has approved an offer, the lender may force unexpected delays. The lender may be very particular with the terms of the sale, e.g. closing dates are not easily changed, and contracts may not be assignable.