Shortsales! As good a deal as they seem? Read on.
Being aware of the pitfalls of any venture is always a good practice. Unfortunately, when it comes to buying a home to live in, there may not have been enough horror stories to show young buyers why they may not want to tread there until now. I am sharing a couple of stories that happened to my buyers and to other agents' buyers.
A young first time homebuyer, eager to get a really "good deal" and why not. It is all over the news about the incredible low prices the foreclosures and shortsales are going for. They decided to put an offer in after meeting the seller and seeing the home. The seller accepted the offer but the bank (third party) still had not. The buyers had to wait week after week, which turned to month after month to get the third party approval and it just never came. Meanwhile the seller had moved out and started to let the home go to the elements which was very discouraging since they were expecting to buy the home in the condition they went to offer with. They ended up letting it go because they were just not able to do the fix up after all the wait.
Now what if it were the other way around? How would you feel if you were the buyer and the seller or third party decided not to accept your offer or even if they accept your offer decides not to sell it to you, dishonoring your contract? This is becoming more of a problem where you have waited for months to get to settlement and something stops you, like the seller just changes their mind! Think it can't happen, that they are obligated by law? Right. But who wants to spend the legal fees to win? Everyone loses.
So you may want to think twice before going after the "great deal" of a short sale.