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Timothy Cate 410-474-8662 Laura Litten 301-399-6638 Call Now
 

January 22nd, 2014 Leave A Comment

Three Reasons To Avoid Buying A Short Sale Property For Retirement

As we represent retirement buyers, these three things are top of mind about short sales:

Suburban home

1. Timing.

There is no rhyme or reason for the length of time it takes to complete a short sale transaction.  Deals can be done in as little as 60 days or can take 6 months or more.  Do you really want to mar your retirement move with the uncertainty that a short sale creates?

2. Third Party Approval

While the homeowner or their legal representative is the only party who can list the house for sale with a broker, because the short sale homeowner will be unable to pay off the mortgage in full, the sellers mortgage company, referred to as the “third party”, becomes a part of the sale process and has to approve the offer.  This leads to a protracted and cumbersome process which requires voluminous amounts of paperwork before the third party will even consider whether or not to accept your offer.  It is not just time consuming, but a very complicated and frustrating process.

3. Transition and Property Condition

Are you prepared to transition into a retirement home that is very likely a renovation project in waiting?  More often than not, the condition of a short sale property has deteriorated as a result of the financial condition of the owners.  Having lost a job or become disabled they are frequently unable to keep up with the maintenance and repairs.  If you can get the lender to accept an offer that reflects the condition of the house, and a part of your retirement plan is to take on a DIY house rehab then go for it.  If not, the short sale is probably not for you.

Give us a call to discuss the ins and outs of buying a short sale property.  We can help you determine whether or not you should be considering short sales in your property search.  Call, text or email Laura at 301-399-6638 or [email protected] or Tim at 410-474-8662 or [email protected] . Or complete the contact form below and one of us will be in touch with you promptly.

 

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