Short sales transactions are usual in real estate deals and it’s also common having its own drawbacks. This article talks about short sales pitfalls and how to deal with them.
* Sellers getting cold feet. You just can’t blame your sellers when they feel doubtful or develop cold feet during the short sale transactions. This is due to the fact that lenders necessitate plenty of infos, and that includes a statement of hardship wherein the seller has to explain the financial obstacle which compels them to discontinue their payments. Not only that, they might also need to see some documents such as pay slips, bank statements, etc.That’s why some sellers may get disheartened by the whole hassles of the process, and so in the end, most simply give up the whole transaction. So as a real estate investor, it’s highly important to explain to your sellers all the things included in the short sale process, and especially the expected timeframes and other hassles that go with it, so that they won’t be distressed further. If they already understand the whole process and the possible drawbacks, then the sellers would more likely to continue with the transaction.
* Short sale transactions take time. Normally, it may take 3 months for short sales to be done. Worse, it may take even as long as 6 months to be completed. This is because short sales are vulnerable to delays like, your files can get lost, etc. So better not to make short sales your only source of income.
* Your offer may be ignored or rejected. So you thought that your offer looks feasible to the lender that he can simply accept your offer? Think again-sometimes they simply reject them. If this happens, you can increase your offer price, or settle with their counter offer. Nevertheless, if you feel that the offer doesn’t sound like a good business sense, then you can drop the deal.
* Unable to close the deal. This takes place when you may have the approval from your lender, but then again, your financing is not yet ready. Typically, the banks will allot you a timeline in which you can close the deal. If you’re making use of private/hard money, it’s significant that you get the buyer examine and assess the house beforehand, in order for them to know the things they get for their money.
Want more options for buying your dream house? Just visit Gilbert AZ Foreclosures and Bank Owned Homes in Gilbert AZ
Looking for some great but affordable homes in your area? Then visit Gilbert AZ Homes For Sale, and Homes For Sale in Gilbert for a variety of options!