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Short sale supplies needed: Time, Patience and Fortitude.

November 15, 2010

Short sale supplies needed: Time, Patience and Fortitude. New Milford CT Real Estate Talk

TimeSo, you are thinking of buying a short sale in New Milford CT? There are some good deals out there for sure, but you need to be prepared for what lies ahead. Most important thing to remember, short sales are not foreclosures! The lender is going on the premise that they want the house to sell at fair market value.

Getting approval from the lender(s) can take time. There is no set protocol, different lenders have different ways of working. What may take a month or 2 from one lender may take 6 months from another, there is no rhyme or reason to the disparity. And if there is more than one lien on the property then it will be a more complicated process.

So, let’s say you put in an offer and the seller accepts it. The lender will then have to approve the short sale and this is what takes time. After they order their own appraisal of the house they may ask you to renegotiate the price, they may reject it outright, they may accept it. Their approval will be based on many things, including the loss they are facing. The dollar amount, the closing date, the strength of your offer. All these come into play when the lender is deciding if it is in their best interest to sell this property short.

You may feel like you are in a holding pattern while waiting for approval of the short sale from the lender, however you are not really in a holding pattern at all. You must still perform, make application for your mortgage, get the inspections done, get all your ducks in a row. As soon as the lender approves they will demand you close according to agreed upon dates. When that call comes in to the listing agent that the short sale is approved, you had better be ready to pull the trigger! If you were advised to sit and wait, to do nothing until approval is given you may well lose the house you have been waiting for.

Do not think what is good for the goose is good for the gander. No indeed. You cannot make them wait because they made you wait. The lender is ultimately driving the bus, and this bus driver will stop and tell you to kindly exit the vehicle if you cannot perform as promised!

So if you plan on purchasing a short sale in the greater New Milford CT area, remember your tools. Time, patience and plenty of fortitude!

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