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Is a Short Sale Property Right for You?
A few tips to help you prepare for a short sale purchase and finance.

Due to recent economic conditions and the government's effort to help prevent foreclosures, the number of short sale properties on the market is rising. Short sales, where a lender agrees to take less than it's owed on a mortgage, typically come at a great price. If you're one of the many individuals the purchase of a short sale property, be sure to read on and learn what to keep an eye out for prior to submitting your offer.

How Much Longer?
You may have heard that there's nothing short about a short sale. In many cases this is true. Unless you're planning to purchase a Wachovia or a pre-approved HAFA short sale, getting a short sale approved can take from 4 to 8 weeks on average.

If you've got your eye on a short sale property and you've got time to spare, consider working with your Country Home Lending Source mortgage professional to ensure you're eligible for funding. By preparing home financing with your mortgage specialist prior to short sale approval you can be sure your bank account can weather interest rate fluctuation later in the game.

More than One Lender
If the seller has more than one loan, you'll need the consent from not one, but all involved lenders to close. One lender could agree to the terms outlined in your offer, while the other reject or have stipulations that could contradict with other lenders' requests. Have your real estate professional to do a bit of investigating before putting an offer in on the short sale. Ask to see a title commitment or a preliminary title report to uncover the number of loans secured to the property.

Reserves for Closing Costs
Keep in mind, most short sale property sellers won't have the extra cash to help pay closing costs. If you, the buyer, don't have enough to pay for closing costs and the bank refuses to allow the concession, you may not be able to close. But don't get discouraged; discuss your price range and mortgage product options with your Country Home Lending Source mortgage professional.

Synchronizing the Close
Sometimes, even with a conventional loan, delays with your short sale financing are inevitable. It's tough to ensure everyone who is part of your home purchase process responds and acts promptly. If a quick close is needed, be sure you and your mortgage professional are prepared.  Contact your Country Home Lending Source mortgage specialist at 405-360-1995, to discuss the factors that may influence the close.

There are many items that make financing a short sale purchase unique. The type of financing a buyer uses has a huge impact on the success of the sale for a variety of reasons. If you try to get the wrong type of loan, even if your short sale is approved by the seller's bank, you might not be able to close that transaction because of financing problems. When purchasing a short sale, it's important to work closely with your Country Home Lending Source mortgage professional to ensure the financing available to you is acceptable.

Keith Siess
Country Home Lending Source
Phone: 405-360-1995
Fax: 405-360-1697