What Should I Expect When I Buy?

Short sales often look like other listings in the MLS, except they may have a lower asking price than comparable properties.

The term "short sale" is a bit of a misnomer, though, as this type of transaction can take much longer to complete than a standard home sale.

The buying process is similar to a standard purchase. You still apply for financing the same way, and order inspections the same way, for instance. But complications in the selling process aren't uncommon, and you'll need patience.

The good news, though, is that times have changed. Many banks have streamlined their processes for short sales, making it much simpler and less time-consuming for buyers and sellers. Market data shows that the time it takes to close a short sale has steadily decreased over the past few years.

Possible short sale hurdles I can help you navigate:

Second mortgages: These can pose problems because a second lender may not agree to the terms set between the primary lender and the seller.

Mortgage insurance: If the seller has mortgage insurance on their loan, the mortgage insurance company will need to approve the short sale.

Other liens on the property: A lien is a claim by an outside person or company on a property for money owed. Liens pose hurdles whether the transaction is a short sale or not, and will have to be addressed before the property can be transferred to a new owner.

Government-backed loans: If the home seller's loan was a government-backed loan, such as an FHA loan, this can cause delays and hurdles because the government will need to be involved in approvals.

HOAs: HOAs can present complications because the lender might not pay fees associated with the HOA transfer from the seller to the new owner.

The Short Sale Buyer's Checklist

· Get pre-qualified for a mortgage.

· Get a home inspection, but understand that most lenders will sell only "as is." The inspection can help you decide whether the short sale price is reasonable, given the cost of repairs needed.

· Understand who is paying the agent's commission and whether you have to make up any differences to your agent.

· Submit documentation to the lender.

· Have plenty of patience but balance it with persistence. Keep in mind that banks have grown much better at processing short sales, which is good news for you.

Get In Touch

Local Expert Updates

Greg Sheeler

Cell: 712.330.1573

Matt Lippon

Cell: 712.330.0604

Janie Eick

Cell: 712.339.0574

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Buchanan Park

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Located a block East from Hwy 71 on 13th Street in Milford and a half block South on P Ave, this is a surprisingly nice and quiet little park that my kids enjoy frequenting. We like to take the dog and throw frisbees. In addition, the park offers a basketball court, swingset and other playground equipment, and some picnic tables.

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Brooks Golf Course

Brooks Golf Club is one of the premier golf courses in the Iowa Great Lakes. Located in Okoboji, Iowa, Brooks is one of the few 27 hole golf courses in Iowa. I've personally been a member here for a number of years, and can tell you that not other course offers the beauty and upkeep that Brooks provides. The numerous flower beds, Caribbean beach like bunkers, bent grass fairways, natural prairie grass, and rolling hills provide for an aesthetic pleasure as you play all 27 holes. Brooks also has one of the nicest practice facilities in the state as well. Come say hi to John, Bret and their teams of professionals. if you are an avid golfer and in Boji, you won't want to miss these links.

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