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Cindy Day


Broker Associate


ABR, CDPE, CRS, ePro, GRI, MCNE, SRES

Tel: (970) 683-2554    Cell: (970) 216-3571    Fax: (970) 244-9454    Toll Free: (800) 777-4573    Email Me

Buying a Short Sale

Why Buy a Short Sale?

To find more information about buying a short sale or if you have any questions please Contact Me. If you are planning on buying or selling your home or property please visit my Buyers Page or Sellers Page and I will be happy to help you.

Buying a property in short sale can be a big hassle, so why consider it? Basically it all boils down to the bottom line - you will usually get the property for a (substantial) discount. Lenders may even be willing to offer favorable financing terms in order to move the process along and secure their original investment. Additionally, the owner in default typically plays an active role in the short sale process, which means you will have their cooperation (unlike a foreclosure). For help with the process please Contact Me.

Before You Purchase

When dealing with the short sale process, there are a few things you need to know beforehand:

  1. All offers are subject to approval by the lender regardless of the homeowner’s acceptance.
  2. Lenders are likely to have their own appraisers evaluate the property, which may affect the potential bargain.
  3. Each lender follows its own set of (unique) procedures when it comes to short sales, which can make the process confusing and frustrating.
  4. Many lenders require short sales to be "as is" transactions, where credits for repairs are typically not negotiated or allowed.
  5. On average, short sales can take significantly more time to close than a traditional transaction, so patience with the process is absolutely essential.

To qualify for a short sale, homeowners must prove all of the following circumstances:

Financial Hardship - A situation is causing the borrower to have trouble affording their mortgage.

Monthly Income Shortfall - Basically the borrower has more expenses than income, which will, or already is, preventing them from affording their mortgage.

Insolvency - The borrower does not have significant liquid assets to allow them to pay down their delinquent mortgage.

Working with Representation

Whether you are a first-time home buyer or experienced investor, it is always wise to work with a REALTOR® when dealing with short sales. The right professional can move you through the process more efficiently, and guide you through the challenges that commonly accompany distressed sale transactions. When interviewing potential agents, be sure to inquire about their experience with short sales and find out if they hold any designations for buying and selling distressed properties.

Making an Offer

An experienced REALTOR® will be extremely beneficial at this juncture in the buying process. Here are some key factors in a successful offer:

  1. Request a written confirmation from the homeowner in default that the lender has received the hardship letter and documents required for a short sale application.
  2. Short sales are commonly multiple offer situations. Be sure to factor into your offer that there is likely to be more than just your offer up for consideration.
  3. Your offer should always be contingent upon the lenders approval within a set time frame.
  4. Use an addendum to outline any contingency terms and conditions. Remember that most short sales are “as is” and a lender will grant few, if any, repair requests.
  5. Even though most short sales are “as is”, it is still crucial to conduct a home inspection. You should assess the bargain potential of a property by adding the cost of repairs to your total offer.

This information is meant as a guide. Although deemed reliable, information may not be accurate for your specific market or property type. Please consult a REALTOR® professional like me for more information on making a written offer.

Cindy Day

About Cindy Day

Broker Associate

ABR, CDPE, CRS, ePro, GRI, MCNE, SRES

What a Difference a Day Can Make!

Interested in a move to the Grand Junction Area? As a long-time Western Colorado resident and an outdoor enthusiast, not only can I help you find the real estate of your dreams, but I can also show you the many things the Western Slope has to offer. Take advantage of my expertise in residential properties, farm and ranch properties, recreational properties and vacant land. I may even show you some exclusive hiking and fishing spots to enjoy!

Buyers: Check out my new Microsoft Bing Mapping tool to look around town and see the community you might like to live in. Then use the ‘points of interest’ buttons to search for nearby schools, parks or even the closest coffee shop!

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