Globella Buyers Realty ResourcesShort Sales > Preparing a San Diego Short Sale Offer to Purchase

Preparing a San Diego Short Sale Offer to Purchase

If you decide that you want to write an offer on a property that is being sold as a short sale in San Diego, you need to understand that your offer will be quite different than most traditional offers (on properties not being sold subject to bank approval).

The first noticeable difference is that your offer to purchase will be subect to the San Diego short sale lender(s) approval. No matter how badly the seller wants to sell you that home (and no matter how quickly he/she wants to close the transaction) the entire transaction depends on whether or not the short sale lender(s) will decide to approve of the sale. As a buyer you want to make sure your offer is written in a way that allows you to cancel the offer at any time with no consequence.

Another difference you should be sure to include in your offer is how contingency time periods are handled. It's in the buyer's best interest to delay the start of all contingency periods (such as loan contingency, inspection contingency, appraisal contingency, etc.) until you have received written proof of the short sale lender(s) approval. This allows you to wait patiently without being required to spend money on an appraisal, inspections, etc. until you know for certain that the short sale lenders are willing to cooperate.

Having the right expectations is key to successfully purchasing a San Diego short sale. One important thing to understand as a buyer of a San diego short sale is how long you may have to wait to get an answer to your offer. Once the seller has accepted your offer, he/she will need to submit the offer to his/her lender(s). From that point, your waiting time could be two weeks to three or four months (or longer) until you hear from the lender(s). Your answer at that point could be yes, no, or maybe so. The lender may want to change certain elements of the offer, or the lender may decide not to approve of the short sale altogether. Be sure to talk with your San Diego real estate exclusive buyer agent up front about all of these matters.

Be sure to include a pre-approval letter from your lender to show the short sale lender that you are a qualified San Diego home buyer. Most banks will not even consider an offer from a buyer without a pre-approval letter. In fact, some banks want the pre-approval letter to be on bank stationary (as opposed to mortgage broker stationary). Prepare for this ahead of time. Also include a copy of your earnest money deposit check. You may be asked to deposit your earnest money deposit check into an escrow account right away, or you may be able to hold onto it until you receive approval from the short sale lender(s). Either way, the short sale lender will want to see a copy of the deposit check.

Your San Diego real estate exclusive buyer agent should prepare a Comparative Market Analysis to submit with the offer that justifies your offer price. If you envision that you may ask the lender(s) to pay for some repairs, then it would be prudent to submit photos and repair estimates with the offer. Banks tend not to like it when buyers ask for a better price or more money for repairs after an approval has already been granted.

Your San Diego exclusive buyer agent will prepare the offer (and any addendums that apply) for you to review and sign. Ask your agent to explain how the offer verbiage protects your interests. Once your offer has been accepted by the homeowner, you want to make sure that a complete package is being submitted to the short sale lender(s) for approval. You should be sure that your San Diego buyer's agent or the listing agent prepares a seller net sheet or a HUD-1 (prepared by a title company or an attorney) to submit to the short sale lender(s). Also, be sure that the listing agent has the homeowner's portion of the short sale package prepared to submit with the offer.  The key here is to submit a complete package one time! If important documents are left out, your San Diego short sale will take even longer to get approved.

Bookmark and Share

----------------------------------------------------------

Exclusive Buyers Agent in San Diego, Justin GrammJustin Gramm is the founder and principal broker of Globella Buyers Realty, your San Diego Exclusive Buyer Brokerage. He also writes a blog, "For San Diego Home Buyers."

Exclusive Buyer Agents do not list homes for sale and never represent sellers. They have no "inventory" to try to sell you. They can represent you in purchasing any home. They are specialists at representing buyers only on the buyers' side of the transaction. Exclusive Buyer Agents work to get buyers the best price and terms when they buy a home.

If you have excellent credit and plan to buy a home or condo in San Diego County within 90 days, contact Justin Gramm to hire an agent on your side of the transaction. Call Justin at (858) 437-2662 or  E-mail.

 

More about Justin Gramm on .

PREVIOUS PAGE: The Ideal Short Sale Seller

NEXT PAGE: How a Short Sale Lender Analyzes an Offer

More on Short Sales:

> Short Sale Defined

> Some Listed Short Sales are Not Closeable

> Why Do Banks Even Consider Short Sales?

> The Ideal Short Sale Seller

> Preparing a Short Sale Offer

> How a Short Sale Lender Analyzes an Offer

> Short Sale Lenders' Approval Options

> Different Short Sale Lenders Act Differently

> Loss Mitigation vs. Foreclosure Departments

Short Sale Testimonial

   "After we sourced many properties, and after you coached me relative to their strengths and weaknesses, we made an offer on a short sale property. The offer was accepted, and you gave me a very realistic outlook of what we could expect... Every Friday, without fail, you let us know how the deal was progressing... I couldn't be more pleased. If anything, I want to do another deal with you just so you can get a little payback on all of your invested time and money." (read the complete letter from Charles...)

Charles A. Smith, CPA
Oceanside, CA

Justin Gramm, Broker
Globella Buyers Realty
Ph: 858.437.2662Fax:858-228-9801
CA 92115 US
 CA BRE# 01714813
www.Globella.com
What is an EBA? When to Hire an Agent Buying a Home in 2020 How My Schedule Works Buyer Strategy Session How I Work When to Buy? Part 1 Globella Questionnaire About Globella Why Hire Justin? Buyer Representation How I Get Paid Helpful Buyer Links Location = Lifestyle Buyer's To-Do List Relocating to San Diego About Justin Gramm VIDEO: Meet Justin First-Time Homebuyers 10 Best School Districts How to Write an Offer Paperwork North Cty vs. San Diego What is Dual Agency? New Construction Testimonials/Reviews Retiring in San Diego About Buyer Agency The Informed Buyer Dog-Friendly Buildings Paperwork Explained Home Buying FAQ Help for Luxury Buyers 3 Investing Strategies The Dual Agent Trap Buying a Condo 5 Reasons to Rent Buying Foreclosures 1031 Exchange Tips The Globella Difference Accredited Agent (ABR) Avoid Moving Twice 5 Reasons to Buy Agency 101 Preapproval Questions Agency Disclosure Negotiation Expert Privacy Policy Second Home Expert Agent Ethics Choosing a Lender Buyer Agent Interview Foreclosures Buying a New Home Hiring an Inspector Negotiating Your Loan Top 1% of Realtors Buyer Services Avoiding Wire Fraud Termites! Get a Home Warranty Hot vs. Cold Market Hazard Insurance Tips Checking HOA Health Earthquake Insurance Condo Litigation SD Weather Tips Property Taxes Cost of Granny Flat Vesting as LLC or Trust Buying with a VA Loan Investor Services Buyer Resources Code of Ethics About the Name Contractor List Moving Checklist The Grande: Downtown Condos Seven on Kettner Treo Beech Tower Citymark at Cortez Hill Park View Gaslamp City Square Watermark 235 on Market Atria Brickyard Columbia Place Harbor Club Island Lofts Angove Lofts Jacaranda Studios Rowhomes on F Bella Via Columbia & Fir Lofts Date Street Townhomes Ecco Lofts Finestra Lofts Hawthorn Place Kettner Rowhomes Lusso Lofts The State The Waterfront Victorian House Aperture Preparing a Short Sale Offer How A Short Sale Lender Analyzes an Offer Short Sale Lenders Approval Options Different Short Sale Lenders Act Differently Loss Mitigation vs. Foreclosure Departments Short Sale Defined The Ideal Short Sale Seller Why Do Banks Even Consider Short Sales? Some Listed Short Sales Are Not Closeable La Jolla Del Mar Point Loma Rancho Santa Fe Pacific Beach Coronado Downtown San Diego Contact Us Communities Buying Short Sales FAQ International Buyers Luxury Buyers First-Time Buyers Vacation-Home Buyers Move-Up Buyers Downsizing Buyers 1031 Exchange Buyers Luxury San Diego Real Estate Fair Housing Investment Buyers San Diego Photos New-Home Buyers Testimonial Chuck Smith Testimonial Downtown Steve What's Exciting! How We Work Short Sale Testimonial Investing Buying a Home Footer Links Local Restaurant Reviews SD Restaurant Reviews Things to Do in SD SD Eatery Reviews Paperwork How We Work About Our Name How We Get Paid Before Writing Offer Before You Write an Offer Before Writing an Offer Del Mar Buyers Agent 92101 Buyers Agent Loan Doc Signing Tips Testimonial - Samantha Z. How I Work Review from Melanie & Michael Review from Erica M. Buying in 2014 Spring Home and Garden Show 2014 at Del Mar Fairgrounds Review from Daniel E. Review from Steve and Chi Buying in 2015 Spring-Home-Garden-Show-San-Diego-Del-Mar-Fairgrounds Buying a Home in 2016 Review from Michael I. Review from John and Wendy Review from Allison H. Review from Frank S. Broken-Landing-Page San-Diego-Spring-Home-and-Garden-Show-2016 Your Ivy at Carmel Valley Exclusive Buyer's Agent Your Sea Cliff Exclusive Buyers Agent Your Avery Pointe at Veridian Exclusive Buyer's Agent Your Lanai in Carlsbad Exclusive Buyer's Agent Your Pacific Gate San Diego Exclusive Buyers Agent Your SummerHouse Carlsbad Exclusive Buyers Agent 2016 San Diego Market Your-Park-at-Bankers-Hill-Exclusive-Buyers-Agent Your Aura Exclusive Buyers Agent San Diego Buyer Agent Review from Mary R. San Diego Buyer Agent Review from Dan B. Your Estates at Del Sur Exclusive Buyers Agent San Diego Buyer Agent Review from Ken and Cindy Three Reasons to Buy a Home in Hillcrest, San Diego Three Reasons to Buy in Bankers Hill San Diego Your Elms at Carmel Valley Exclusive Buyers Agent When to Buy? Part 2 San Diego Buyers Agent Review from Kevin C. Three Reasons to Buy in Encinitas San Diego San Diego Buyer Agent Review from Natacha S. Is Fall a Good Time to Buy a New Home? Your Elms at Carmel Valley Exclusive Buyers Agent Your Canterra Exclusive Buyers Agent Three Reasons to Live in Normal Heights, San Diego San Diego Buyer Agent Review from Renaud P. Buying a Home in 2018 Your Estancia at Cielo Exclusive Buyers Agent Your Upper Cielo Exclusive Buyers Agent Three Reasons to Buy a Home in La Mesa Your-Cottages-at-St-Cloud-Exclusive-Buyers-Agent Your Harmony Grove Exclusive Buyer Agent Three Reasons to Live in Kensington, San Diego 8 Home Maintenance Tips for Spring Federal Interest Rate Hike and San Diego Homebuyers Review from Stewart H. Review from Roland M. Review from Duane and Nancy Review from Natacha S. Review from Shandi and Michael Your Savina Exclusive Buyers Agent Your Escaya Exclusive Buyers Agent Your Terraces at Robinson Ranch Exclusive Buyers Agent Your Signature Exclusive Buyers Agent Your Garrison Landing Exclusive Buyers Agent Review-from-Joseph-C Review from Kara S. Review from Martin and Jackie 2018 Market Update Three Reasons to Live in South Park San Diego Review-from-Adam-W. New Granny Flat Law in San Diego Why Buy at Civita Review- from-Randy-F. Review-from-Oline-C Buyer's Privacy Rights Review from Alex M. Three Reasons to Live in Tierrasanta Review from Greg C. Review from Kenjie S. Review from L.T. Review from Mike L. Sandicor Statistics Videos Market Statistics Request a Buyer Strategy Session / Interview VIP Home Finder Home Investigation Tips Free Buyer Reports Free Investor Reports Welcome Subscribe Site Map