Bend Oregon Short Sales, A Brief Summary
What is a Short Sale?
A short sale is when the purchase price of a property is not sufficient to pay off the debt owed, including any encumbrances owed on the home or property. In a short sale, the bank (and any other Third Party that is owed debt or has recorded encumbrances against the property) has to approve the terms and price set forth in the sales agreement. The seller usually doesn't know whether or not the Third Parties will accept the the price and terms.
If the seller accepts the offer, the offer is then presented to the banks and third parties. These parties will then look at the offer and decide whether or not to accept the terms. This process can take months. Short sales in the Bend area can close escrow within a normal time frame, but usually take at least 60 days and sometimes 6 months or more. Buyers have to be patient. Sometimes the offer will be on the banks desk for months, only for the home to be foreclosed on before the offer is accepted. In other situations the banks could have the offer for months and deny the offer, leaving the buyer back at square one.
Buyers should include a "short sale addendum" in their offer. This addendum will make any timelines for inspections, loans, and other contingincies start upon the banks acceptance of the offer. This way the buyer will not loose any money paid to for inspection and/or appraisal services if the bank doesn't accept the offer.
If you're looking to move into a home by a set date, a short sale is most likely not for you. Short sales can sometimes be picked up for great discounts, but you have to be patient and have a broker that has knowledge of the short sale process.
If you have any questions about the Short Sale process in Central Oregon, please call me. 541-749-0509