What Should I Expect When I Buy?

Short sales often look like other listings in the MLS, except they may have a lower asking price than comparable properties.

The term "short sale" is a bit of a misnomer, though, as this type of transaction can take much longer to complete than a standard home sale.

The buying process is similar to a standard purchase. You still apply for financing the same way, and order inspections the same way, for instance. But complications in the selling process aren't uncommon, and you'll need patience.

The good news, though, is that times have changed. Many banks have streamlined their processes for short sales, making it much simpler and less time-consuming for buyers and sellers. Market data shows that the time it takes to close a short sale has steadily decreased over the past few years.

Possible short sale hurdles I can help you navigate:

Second mortgages: These can pose problems because a second lender may not agree to the terms set between the primary lender and the seller.

Mortgage insurance: If the seller has mortgage insurance on their loan, the mortgage insurance company will need to approve the short sale.

Other liens on the property: A lien is a claim by an outside person or company on a property for money owed. Liens pose hurdles whether the transaction is a short sale or not, and will have to be addressed before the property can be transferred to a new owner.

Government-backed loans: If the home seller's loan was a government-backed loan, such as an FHA loan, this can cause delays and hurdles because the government will need to be involved in approvals.

HOAs: HOAs can present complications because the lender might not pay fees associated with the HOA transfer from the seller to the new owner.

The Short Sale Buyer's Checklist

· Get pre-qualified for a mortgage.

· Get a home inspection, but understand that most lenders will sell only "as is." The inspection can help you decide whether the short sale price is reasonable, given the cost of repairs needed.

· Understand who is paying the agent's commission and whether you have to make up any differences to your agent.

· Submit documentation to the lender.

· Have plenty of patience but balance it with persistence. Keep in mind that banks have grown much better at processing short sales, which is good news for you.

Get In Touch

Local Expert Updates

Matt Lippon

Cell: 712.330.0604

Janie Eick

Cell: 712.339.0574

Brooke Jones

Cell: 641.420.2172

Greg Sheeler

Cell: 712.330.1573

Community Updates

Brooks North

Brooks North is a newer housing development located on a cul-de-sac offering beautiful views of Brooks Golf Club, ponds, nature areas, the bike trail system and the Nature Center. There are many beautiful homes and only a few vacant lots remain. Brooks North is located on the North end of Brooks Golf Club in Okoboji, IA.

Real Estate and MLS Homes For Sale in Okoboji

About Okoboji

Omaha Beach

Omaha Beach is on the north end of Echo Bay, extending out into Omaha Point. Known for its secluded private access from Lakeshore Drive, Omaha Beach properties are some of the most sought after on West Lake, easily fetching over $15000 per linear foot of lakeshore.

Real Estate and MLS Homes For Sale in West Lake Okoboji

About West Lake Okoboji Learn More

Boji Bay Funhouse Pavilion

Boji Bay Funhouse Pavilion
2501 Boji Bend Dr
Milford, IA 51351

Boji Bay Funhouse Pavilion offers a LOT.

Facilities Include: Banquet area with a giant indoor rug slide, kitchen/catering, Bar area, Conference Room, 2 Outdoor Pools, Boji Bay Legacy Park Concert area, mini golf, as well as the Clubhouse restaurant.

One can rent out the pools for a concert, or the Banquet area for weddings/parties.

What Should I Expect When I Buy?

Possible short sale hurdles I can help you navigate:

Get In Touch