иконописПравославни икониCentral Oregon Short sales are confusing to almost every party involved.  Many times a listing agent without the proper experience or without the proper guidance does not realize who they are truly working for.  Often they will actually act on behalf of the bank instead of the seller.

A listing agent represents the Seller and only the seller.  Once a seller accepts an offer of a short sale the offer is submitted to the bank along with additional or updated financials from the seller, an estimated HUD statement and then the process begins.

Once the seller has accepted an offer and it is submitted to the lender or lenders the property is now Contingent Short sale in the Central Oregon MLS, or should be.  In theory the seller has agreed to sell the home, for the terms and conditions set in your offer.

Not All Agents Are Created Equal

Notice I say in theory, you see not all listing agents are equal when it comes to accepting offers, submitting offers or even understanding the process.  If you are willing to look at a short sale as your potential new home or investment home  then you need to understand that not all agents process a short sale the same.

Knowing what the listing agent is going to do, if they are going to change the MLS status, if they are going to work through one offer before submitting others to the bank and so on are very important facts that you as a buyer should know so you know what to expect on the process of your transaction.

If in doubt it may not hurt to have your agent (and you should have your own agent on any real estate transaction but on a short sale especially) to write these terms into your offer.

It is my personal opinion and those of many of the instructors of the classes I have attended that once a seller accepts an offer – any additional offers go into a back up position.  After all a seller can only sell a home once – be careful out there not everyone is qualified to help you through a short sale.

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Your Perfect Home a Short Sale?

You have found the perfect home in Central Oregon, and you discover it is a short sale!  One of the most common questions is…. How long will it take to buy this home?  The answer is not simple; it just depends on a lot of different conditions.

What is a Short Sale?

A short sale (sometimes called a pre-foreclosure) is a home offered for sale at a price that will not pay the entire amount owed to the lender, the closing costs and so on.  So, why or how can someone list the property for less than they owe?  Market conditions, do not support the amount owed on the home.  However there must be a hardship, the bank that is owed the money will not take a loss just because the seller has decided they don’t want to own a home that may have lost value.  History shows that Real Estate trends go up and down today may be a down market – but over time this will change.

The Seller is Upside Down is NOT Reason Enough

If you owe more than you think your home is worth today that is not a good reason to short sale.  If you continue to make your payments and ride the market out the day will come when your home is worth more than you owe.

The home that is on the market today as a short sale can be a great deal, if you are patient.  However statistics show that only about 40% of these transactions actually close escrow.  The reason is not necessarily because of the bank, but that the buyer gets impatient and wants a home they can move into in a shorter period of time.

The agent that has a home listed as a short sale will need to be in constant contact with the bank.  As a buyer your agent can be as on top of things and aggressive as can be but if the seller’s agent does not know what to do or how to do it the buyer can sit and wait in frustration.  More and more agents are educating themselves as to the short sale process and banks seem to be getting through the process a little quicker to.

Personally I do not think the short sale home is the perfect home for a first time home buyer.  A short sale takes time, and the frustration of waiting can kill the excitement of the first time home buyer, not to mention that lending programs change rapidly and the loan you plan to use may no longer be available when you finally get the approval from the bank on the price and terms of the short sale.

Now that spring is here the buyers seem to be more active and the banks are starting to place properties on the market that have been sitting for a while.

A couple of the homes that you will find on these lists have been sitting vacant  for several months.  That does not mean they are a better or worse home, I only point it out so that you will understand that these lists may start growing for the simple fact that the banks are starting to get properties put on the market for sale. The weather is improving although we certainly could use some of our beautiful sunshine.

Bank owned homes can appear to be the best deal on the block, but remember there are other homes that may be a better value.  My job is to know what you need or want in your dream home and help you make that dream a reality.

Each Box Below will take you to a current list of Bank Owned homes in each area.

Many times a buyer will tell me that they really love a home that is listed as a short sale and it already has an offer on it.  Most of the time writing an offer on such a property gives you an opportunity to be in line so to speak for the property.

Often times a Central Oregon Short Sale listing will receive an offer, but for one of several reasons the transaction will fall apart.  If you are in “back up position” or in a situation to get an offer in you will most likely be the next to be submitted to the bank for approval.

What are some of the reasons the first offer fails?

• Buyer found another home that is easier to close
• Buyer’s financing ability changed
• Bank did not approve price or terms
• Terms were not acceptable to the seller or the buyer
• Buyer wrote more than one offer and got the other property closed.
• Buyer did not approve a home inspection
• Seller could not or would not agree to repair something

Remember that when you are purchasing a short sale the seller gets nothing.  Repairs are less than likely to be preformed, that does not mean you should not do a home inspection.  In fact that means you should do an inspection, so you know exactly what you are purchasing.

If you are interested in buying a short sale or need to list your home as a short sale, I am available to assist you in the process.

One of the biggest questions from Short Sale Sellers, and folks facing bankruptcy in Central Oregon is how long before I can apply for a new mortgage?  The answers have been slow in coming but finally some mortgage folks are stepping up and answering our questions.

Jason with Home Loan Ninjas  answers this and a couple of similar questions in his FQA section.  See for your self What Jason has to say, and feel free to give them a call for you mortgage needs.

Please note that Jason talks about keeping your credit clean, and having a few other things you may have to work through.  This is just when you can apply as with any loan or service this is a case by case determination.

Additional Ask The Mortgage Professional Articles

Looking for a mortgage professional? I would encourage you to contact;

Jason or James – your Home Loan Ninjas at 503.799.4112 or you can visit their website and see more info about mortgages and what you should expect.