@jcstarkey8826 wrote:
Just curious what the pros/cons of the short sale are?
Im looking at houses and in MI there are SOOOO many short sales and amazing homes for the price.
If the only negative is the fact that you wait so long for an acceptance just for the chance to be shot down, Im OK with that. I live rent free and have no lease obligations so If I can get a nicer home I want to.
My fear is losing money, I don't want to have to pay out a lot of money for the offer to be rejected, and I heard that the bank can accept other offers up to the point you sign for the house.
Any suggestions on if the short sale is worth it and about how much I could end up losing financially if it falls through?
Short sales can be an excellent value. However, there are some pitfalls. Go to an experienced short sale agent. If you go to a CDPE (Certified Distressed Property Expert) you are going to an agent that specializes in short sales.
One of the first things they will tell you is stay away from those where more than one offer is submitted to the bank at the same time. That is the worst way to handle a short sale. Now, if they are taking backup offers that's OK. But submitting multiple offers to the bank for approval is a receipe for failure. The offer that should be submitted is the strongest offer and that is the only offer the bank should see for a given property.
You shouldn't lose any money on a short sale. If it isn't approved, you get your EMD back since it is in escrow subject to the bank's approval. If you don't have a short sale addendum on the contract specifying the contract is subject to third party approval (its a standard form) run away from the agent preparing the contract. Don't go to just any Realtor - make sure they have had short sale experience and you will be fine.
