With Short Sales, TIME IS OF THE ESSENCE!! Here's why.......
Any of us who have a fair amount of experience with short sales know that they don't always go according to any expected time frame.
Requesting extensions from the bank is a fairly common thing.
However, it is extremely important to realize that you should NOT use that as a buffer and think, "oh well, we'll just ask for an extension"
Remember, a short sale is a FINANCIALLY DISTRESSED property owned by a FINANCIALLY DISTRESSED homeowner.
Time is of the essence on these properties because ANYTHING can happen during an extended amount of time.
10-day extension not such a big deal, huh?
Anything can pop up during those 10 days - a new tax lien, a new HOA lien, etc. because any financially distressed property is more than likely going to eventually generate more debt, more liens, etc.
DONT' USE THE ABILITY TO GET AN EXTENSION FROM THE BANK AS A CRUTCH!!
Move even MORE quickly than you would on a standard sale when it comes to short sales.
You never know what financially distressed shadows are lurking around the corner that will throw turmoil into your escrow..........
Good post!
Ralph: That's what I try and do and everyone thinks I'm nuts. As you say, the longer the process drags on the more costly things become. I just wrote one where we want to close in 30 and the other at 45.
Hi Ralph,
There is nothing short about a short sale is there? It is so important to for Buyers to review the title at closing I bet. Our market is lucky to have only a few short sales here and there, but on the west coast of Washington it is like 50% of all transactions!