Be patient and flexible with the settlement date, short sales can take from 45 to 60 days or more
Have an alternate plan in place in case the short sale is never approved
Short sales don’t make sense for buyers in temporary housing, which must be vacated by a certain date, but be sure you can vacate within 30 days of the completed sale
Homes in better condition are more likely to receive Federal Housing Administration appraisal approval
Agents need to consistently communicate with buyers, sellers and the lender in a short sale to make sure everyone can come to an agreement on the terms
Work closely with lawyers who have good access and relations with the lender in order to expedite a short sale, especially the title transfer and the release of any liens on the property. The last thing a first-time buyer needs is to deal with the unpaid debts of the previous owner
Make sure to get an inspection. Homeowners who have been struggling to pay their bills are likely to have deferred important maintenance on their home. While adding a fresh coat of paint is a minor job for first-time homeowners, repairing the roof or replacing the furnace are expensive propositions that may be a budget breaker for the household. A home inspector can evaluate the systems and appliances and provide an estimate of when things might need to be replaced.
Pay careful attention to the details of the contract. When the sellers are in financial distress, there is a greater likelihood of items being removed from the home or damage occurring during their move.
[Source: WashingtonTimes.com "Big benefit in short sale for seller, buyer" July 31, 2009]
