According to the Ventura County Regional Data Share, at the time this post was written, out of the 2431 homes listed for sale in all of Ventura County, 585 are short sale properties. Short sales have become a regular part of Ventura County’s real estate inventory and some home buyers are still interested in purchasing short sale homes. However, before writing an offer on a short sale property I inform all my home buyers of what to expect in a short sale transaction. Below are a few recommendations that every home buyer needs to consider as they make an offer on a short sale home.
Simple guidelines for buying a short sale in Ventura County:
Before you make an offer on a short sale property in Ventura County ask your Realtor® to gather the following information:
- The home seller’s circumstances for the short sale and the seller’s financial situation.
- Have the home sellers received a notice of default or are they still paying their mortgage?
- If the sellers have not received a notice of default, getting a short sale approval from the sellers’ lender can be a lengthy process.
- Do the sellers have a second mortgage, such as home-equity lines of credit.
- The 1st mortgage has priority over the 2nd. The first mortgage has to approve the sellers’ short sale and the amount for paying off the loan. Then the 1st will offer an amount to the 2nd. If the 2nd does not approve the payoff there are a few scenarios that can take place.
- In most cases when the 2nd does not agree to the loan payoff the property is foreclosed upon.
- The experience of home sellers’ real estate agent with short sales.
- Short sale transactions have unique concerns and requirements, some of which can be quite frustrating if reasonable expectations are not established up front.
My best advice to you is not to get too emotionally attached to a short sale property. Many short sale properties fall out of escrow before the approval of the short sale by the sellers’ lender. So please don’t spend your money on appraisals or inspections on the home until you have received a written approval from the sellers’ lender. In case you are renting, Do Not give notice to your landlord until you have received the short sale approval letter and have officially opened escrow.
