Short Sale Questions from a Prospective Buyer

Five Questions a Buyer Needs Answers to Before Looking at a SHORT SALE Property:

1. Has the Seller’s agent submitted the homeowner’s package to the bank, and has it been approved? (Okay – that’s more than one question.) If the bank hasn’t yet determined that the Seller is qualified for a short sale, a prospective buyer may have a long wait only to find that the bank won’t approve.

2. How many lienholders are there? If more than one, are they the same lender? (Again, two questions – not one.) The more lienholders, the more complicated the transaction. If the Seller’s agent knows the answer to the question, that’s a good sign that communications with the bank are underway.

3. Has a loss mitigator been assigned? If the Seller’s agent doesn’t know what a loss mitigator is, that’s a bad sign. If one has been assigned, that’s good – that’s more evidence that the bank is communicating.

4. Has a third-party BPO already been done, or is the bank waiting on an offer? (Again, a two-part question.) BPO is short for Broker Pricing Opinion. This written opinion lets the bank know – or think they know – the market value of the property. If the Seller’s agent can tell you that the BPO has been done, you should have a much shorter response time from the bank if you decide to bring an offer than if the bank has no clue as to value.

5. Are you using a professional negotiator? Short sales require a lot of communication between the Seller’s agent and the bank. A lot. If the Seller’s agent is working with a professional negotiator, HURRAY! This should mean that a Buyer is NOT likely to experience long, long delays in getting a response, should he decide to bring an offer.