I'm thinking about going after short sales for flip or buy/hold properties--but the often-lengthy process gives me pause.
What happens if I make an offer, but the wait is so long that during that time I've found another property and/or my source of funding (typically private financing) is no longer there?
For you short sale-ers, how do you keep everything together while you wait?
You could always back out of the transaction or find another source of funding. Typically backing out of a short sale prior to approval isn't too difficult for a buyer or seller.
Short Sales are my gig and my favorite way to invest!.
They have lots of easy outs
- more than 30 days
- bank not approving the price
Along with all the normal ones
- not appraising
Personally I love them!
Short sale contracts call for an approval deadline, usually 90 days or so. Most will have the inspection period beginning after bank approval. As a listing agent for short sales, I insist on the inspections up front for just this very reason.....a buyer deciding to walk away after approval, with the owner being 90 days closer to auction.
Thanks for your feedback, guys. @Elizabeth C. --how long does it typically take for one of your short sale deals to be completed?
It has taken anywhere from 52 days to 7 months
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!