How to purchase a home that is going into short-sale in California?

Question

I have recently found a home that are going into short-sale. How do I go about to purchase this property? The listing agent is non-responsive and basically unfamiliar with the process. I have contacted the lender and it says that notice of default hasve been sent back in December, and it will be forecaslosed in March. At this point, the lender told me to talk to the listing agent and that they can't do anything until March. Any recommendation?

Answer 1

A short-sale is a last ditched effort by the seller to get rid of their house before it goes into foreclosure and ruins their credit. With a short-sale you will need to make an offer on the property just like you normally would. The listing agent then needs to take the offer and get it approved through the lender. They will have to agree to take less than what is owed on the loan. Just a fair warning.... not all lenders are willing to do a short sale. They have every option just to hold out and go through with the foreclosure process in March.
I am curious what city is the property in? I am a real estate agent and do a lot of properties in Orange County and Riverside County. Let me know if I can help. [e-mail]

Answer 2

Many successful RE investors who focus on short sales handled the negotiations with the lender directly. The recognize the rights of the agent but at the same time do not let the agent present the offer to the lender. Most of the time you want the loss mitigation department as they deal with stopping the possible losses associated with loans that go bad.

The short sale has to complete before the foreclosure sale. Not all lenders are even interested in a short sale.

Answer 3

Short sales are really no big deal, basically last ditch effort to sell the house before it goes back to the bank. Contact an agent to represent you--usually 80% of the asking
price is rule of thumb. Be prepared to wait for a response from the bank if the offer has been accepted. Make sure your lending is set up so you can have a quick close. Get an agent-not the Listing agent, one to represent you.