Lakeland FL Short Sale – Can I Still Negotiate An Approved Short Sale?
Why Wait To Do an Inspection on a Lakeland FL Short Sale?
When buying a Lakeland FL Short Sale, time and patience is key to a successful short sale transaction. Home Inspections are generally carried out after the seller accepts the buyer’s offer during a traditional sale and bank owned property, which is usually completed within a couple of weeks.
Generally, Lakeland homes for sale as short sales are being sold as-is with right to inspect. So, why would a buyer want to wait until receiving an approval from the seller’s lender?
Buyers would argue the time of inspections due to lengthy process receiving an approval for the short sale. However, the sooner the inspection is completed, the sooner the buyer can move on to another property should the property require extensive repairs. The buyer can exercise the right to cancel the contract.
Buyers also argue that they don’t want to spend the money on a home inspection fearing the short sale does not get approved. On the contrary and in my experience handling Lakeland FL Short Sales representing mostly buyers, by being proactive as a buyer completing an inspection prior to lender approval is testimony that there is an interest in the property in which the lender just may speed up the process.
More importantly, a buyer requesting an inspection after short sale approval can’t expect the lender to approve the buyer’s laundry list of repairs. Buyers may have a better chance receiving a credit for repairs when the short sale package together with the sales contract is submitted to the lender after the home inspection is completed.
After all, as a buyer receiving a nice discount on the Lakeland FL Short Sale will make up for a few hundred, perhaps a few extra hundred dollars spent on a homeowner inspection.
Waiting three, six or perhaps nine months until the lender approves a short sale is really a waste of time for the buyer to do a home inspection.
Make Sense?
Hiring an experienced Realtor when buying a Lakeland Short Sale is essential.
I represented the buyers for a home in Carillon Lakes in Lakeland, Florida that was listed as a short sale and my buyer did not walk away – a successful short sale transaction from start to finish.
Showing Lakeland homes listed as Short Sales requires extra precaution when representing buyers. I always tell my buyers to be patient, have a pre-approval letter from a reputable lender or proof of funds. My estimated closing date is about three to six months out. If a potential buyer is looking for something to move in right away, a short sale may not be an option.
Before we made an offer on this Carillon Lakes home, a comparable market analysis is completed to make sure that the home is priced right. Too often the home is priced too low enticing buyers and agents to make an offer only to find out later that the short sale will not be approved after waiting for months.
- 4026 Whistlewood Drive, Lakeland Florida 33811
- Sold for $149,000
- 3 bedroom, 2 bath,
- den,
- lanai
- hardwood floors,
- low monthly homeowners association fee
- 24/7 security guard
- Listing Date October 2009
- Contract Date December 2009
- Date Closed May 2010
Interviewing the listing agent is key to find out if the seller turned in all the required documents needed to complete the short sale process. All too often, it turns out that there are still documents missing or the sellers are not cooperating, delaying the process even further. Asking how many lenders are involved and if there is private mortgage insurance on the home. More importantly getting updates from the listing agent and keeping my clients, the buyers up-to-date on the status is a key factor having a successful short sale closed.
Buying a Lakeland short sale is not for the faint at heart and patience is required process. Hiring an experienced real estate agent who is experienced on both sides of the transaction is basis to a successful closing.
There are hundreds of Lakeland homes for sale where owners are trying to get a Short Sale approved by the lender. After searching the internet and gone through these listings perhaps did a drive by of the home you like. You ready to go out and buy your Lakeland Short Sale – not so fast!
Foremost, you must understand that the seller still owns the home, still has the title to the property, and still has the authority of what offers will be accepted. Remember, the bank does NOT own the property until it is sold on the courthouse steps.
The owner can accept an offer from you, the buyer, but since the offer is lower than what the seller owes on his note/loan it requires third party lender approval to the offer. Generally, the lender requires the property be sold as-is.
A short sale process requires your patience, therefore when you are looking for Lakeland real estate and you must be moved in by a certain time it’s best to look at homes that are not requiring third party approval.
There are only 2 steps you should follow before buying a Lakeland Short Sale.
- Hire a Realtor® – an experienced buyer’s agent that represents your interest and has the knowledge to handle a Lakeland Short Sale.
- Make sure you have been pre-qualified by a local mortgage broker who knows the Short Sale process and follow up with the mortgage approval process your lender requires, unless you are a cash buyer.
Steps to follow when making an offer on a short sale
- Your agent should advise you of the current market condition, price, and condition of the property in preparing you with an offer that the seller accepts and the bank most likely approves
- Your Buyer’s Agent should submit your offer on a FAR/BAR AS IS Offer to Sale or Purchase with the FAR/BAR Short Sale Addendum.
- A nicely hand-written letter explaining why you want to buy this home may help to get third party lender’s approval – depending on your situation.
- Your earnest money deposit should be in place, either in your Realtor’s® Trust Account or submitted to the Title Company when the offer is accepted by the seller.
- Your agent should be in communications with deadlines for inspection, loan approval deadlines and update you as soon as it becomes available from the seller’s listing agent and/or lender.
- Patience – Generally, it will take the lender weeks before the short sale is approved, even if the listing agent states “Short Sale Approved”. Looking at a closing date of at least four month from the time you submit an offer is a good estimate for a closing date.
Contact Petra Norris at (863) 619-6918 or email me at Petra.Norris@lakelandfloridaliving.com if you are looking for a Lakeland Short Sale. To view all Lakeland real estate listed for sale just click the Lakeland Florida Homes Search button below.
