JANESVILLE WISCONSIN - JANESVILLE Homes,Foreclosures & Real Estate For Sale

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Call Shorewest Realtors Ask for :
Lynne @ 608-921-303,
Sally @ 608-346-0569 or Pat @ 608-201-9605

How does a Short sale work?

Google Short Sales and find 119 million sites!

WOW….way too many for me to look through…How about YOU?

I will attempt to give you useful information about short sales as briefly as possible, and then if you still have questions, or need assistance…..contact me directly.

What is a Short Sale?

A short sale is when a homeowner needs to sell their property for LESS than what is owed on it.

The homeowner will need to show true hardship, provide financial information to their lender ( or lenders if more than one mortgage ). It is recommended to use a REALTOR that has experience with Short Sales….as the paperwork and time that is required is great

What will the lender accept?

The answer will vary from one lender to another…but basically they base their decision on the current market value of the property….not on what is owed to them.

If the property is in the foreclosure process, the lender knows that they will have many additional expenses to foreclose on the property and then maintain and market the property until they can sell it…..so they are open to short sales.  This said, the process is long….so if you are a buyer wanting to purchase a short sale, PATIENCE , PATIENCE and MORE  PATIENCE .is needed. 

How long does it take to get short sale approval?

The time frame varies.  From my experience, 2-4 months is average.

I have had one that took just 10 days to get approved….but then again…I had one that took 7 months!!!  Both of those were very unusual circumstances.

Why Should I Buy a Short Sale instead of a Foreclosure?

Both Short Sales and Foreclosures can be great bargains! The short sale property is still owned by the seller and maintained by the seller.  Many times they are still living in the property so the utilities are on, and   mechanicals are functioning. The yard is usually better maintained….you get the point.  A lived in home is generally better maintained than a vacant one.

In a Foreclosure….the property has been vacant….some for many months.  Some were vacant before the bank owned them, and thus, anything could have happened, pipes freeze, roof leaks, etc. Many times the foreclosed property has no utilities on, and has been winterized.  If you want to purchase a foreclosed property, be sure to have an independent inspection done…the contingency must be in your contract…your agent can help advise you on this.

Steps to Purchasing a Home that will be a Short Sale

1. Get pre approved….no lender will approve a buyer that doesn’t have a pre approval letter. 

2. Do not include any sale of home contingencies. Lenders won’t approve a short sale that isn’t ready to go to closing.

3. Write your offer with the fewest contingencies as possible to make it the most attractive to the lender as possible.

4. The owner of the property will review, and negotiate the offer with you , the buyer and accept your offer…..but this isn’t the end of the story!

5. Now, as a buyer, sit back, be patient, and let the listing agent go to work.

The “package” needs to be submitted to the lender for approval.  It many times takes 45 days for the lender to assign a “ negotiator” to the file….that is when the process STARTS for the lender. They have a procedure to follow and they won’t be rushed.

Once the negotiator receives all the information he/ she needs from sellers, listing agent, other opinions ( usually another area agent) and an appraisal then the package is reviewed and decision is made.

 Please remember, ONLY THE LENDER controls the amount of time is takes to

get a short sale approved.  The seller nor the agents in the transaction have no control,

they can keep you informed on the progress….but cannot control the timing

6. Assuming the Lender approves the short sale, NOW, you as a buyer needs to switch gears and quickly.  After the long wait for an answer, you need to now HURRY up to get the rest of your financing in order, as well as any other contingencies met….before the deadline!

Buying short sale property is not for everyone….but if you have the time….and patience, you can get a very good buy!

For more information on Buying a Home, short sale, or not…..visit my website at

www.Rockcountyhomes.com

and email me , Lynne Forrestal at Lforrestal@shorewest.com

or call directly 608-921-3031

Happy House Hunting!