Where do I begin if I want to purchase a short sale?
The first thing I advise a client to do is to look at your time frame and be really honest with yourself. Ask yourself the following questions:
Do I have the patience to allow this sale to work through the system, knowing that it may take months?
Do I have an alternative place to live if it takes longer than 90 days?
Will I be able to accept a house in "as is" condition?

After you have answered yes to these questions, then you need to talk with an agent who is experienced in short sale transactions. They understand the time frames involved, they know the right questions to ask the listing agent, and they are aware of the pitfalls so that they can guide you through the process to avoid them.

Because short sales can be tricky, I would advise selecting an agent who has successfully closed at least a few short sale deals. There are also classes agents can take to educate them on the short sale process. So first ask yourself the above questions ( be brutally hones with yourself ), and then ask your agent; “When was your last sold short sale?” Have you taken classes on Short Sales? Are they on any team or in any group that focuses on Short Sales?

Additionally, it's wise to select a settlement company that also has short sale experience. If your agent has completed more than one short sale, they probably have a relationship with an attorney who knows the system. I know, I have a close relationship with my closing title company. This is important because they have to prepare the HUD before the bank will accept the offer. I will be happy to give you recommendations for a closing company should you need one.

Posted By: Teresa Cline on Friday, October 30, 2009