Purchasing a Short Sale in Grand Rapids

 

Purchasing a Grand Rapids Short Sale

Grand Rapids Short Sale When you come across a property that is a short sale in your search for Grand Rapids real estate, patience is the key. The average closing time for a short sale in today’s market is three to four months and can sometimes be longer if you are at the beginning stages. You should know going in that it is going to be a long and sometimes frustrating process but the end result could very well be worth it to your pocket book.

A seller is trying to sell their Grand Rapids home as a short sale in order to avoid a foreclosure. The reasons they are in this predicament are varied and could be anything, loss of a job, moving out of state etc. Whatever the reason, a seller is required to provide several documents to the bank for the bank to consider discounting the loan and accepting a short sale. Among the docs required are a proof of hardship, tax returns, pay stubs and a detailed payment and expense statement.

Once the bank has this information from the seller, then they need an offer to purchase the home before they start the process. A good broker will have investors willing to purchase the property and they will write an offer on it, to get the ball rolling. Whenever you are looking at a short sale to buy, ask the agent or the owner if an offer has already been submitted and find out if all of the documents have been collected and sent to the bank. If these things have already been done, then you are in good shape but it is still going to be a long wait.

Once your offer is submitted to the bank, a negotiator will be assigned and appraisals will be ordered. It could take up to thirty days just to get a negotiator assigned to your offer. This is due simply to the huge backlog of delinquent loans being handles by the bank. At this point, the listing agent should not be accepting any offers, although they frequently do. Every time a new offer is submitted to the bank, the whole process is started all over again, so really the agent should just work with the one offer. Provided it is a reasonable offer.

At some point after the appraisals, the bank will either counter the offer or agree to accept it. Once the bank accepts it, the package is sent to Fannie Mae for approval and they have to assign their negotiator.

If you have any questions about purchasing a Grand Rapids short sale or if you have a home and want to find out more about what we do to sell them, visit my website or contact me any time.

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2 Comments

  1. Posted July 28, 2010 at 7:57 pm | Permalink

    That’s a pretty good synopsis of the process. The short sale process is pretty simple but the motivations of the bank are very complex.

  2. Posted October 8, 2010 at 10:45 pm | Permalink

    I have had such a tough time with Chase getting a home refinance… They are the worst to deal with!

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