Buying Short Sell Properties

[Dan L.]

Hello all,

We just found a potential investment property in Tampa, and which is a short sell SFH.

Since short sell is pretty new to me, what important things I should look into? Any special procedure compared with traditional sale?

[Wayne Brooks]

David, we know that the lender will be looking for something close to FMV, less Required, Major repairs. Many times we'll go in with a low offer, if I have talked to the buyer and am comfortable they are willing to come up to the range we will probably need to be in. As far as BPO's, it's tough. BPO agents of course know exactly why we want to meet them at the property, give them the lowest comp.s we can find, etc. The problem is many lenders will make their BPO agents exclude short sales and REO's from their BPO's, which of course skew them to the upside. FNMA can be the worst, ignoring FHA appraisals even. I have had pretty good success with their value dispute process though, lately. We always require inspections up front, and send contractor estimates in with the offer for any major required issues, before they come up with a value.