Short sale properties can be a great source of income for investors and a great deal for home buyers.
Remember, a short sale is when the bank agrees to accept less than the full amount owed on a loan. Since they’re taking a loss, they’re eager to sell quickly.
Typically, the current owner is going through a difficult time; otherwise, they wouldn’t be at risk of losing the property. Difficult times bring overwhelming stress and emotional upheaval.
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How to Bid On a Short Sale Property Portland/Salem
Building and managing relationships is essential in any negotiation.
For the bank, a short sale is just a business transaction, but for the owner, it might mean parting with a property that holds deep emotional value.
You’ll have to take different approaches with every party to a short sale transaction to get the best result.
Data is on your side. Research comparable properties to get a clear understanding of the market, and gather reasons to support your offer before submitting a written bid.
In a short sale, you have to get agreement from the owner and the bank(s) involved on the purchase price and the terms.
Obtaining written permission from the owner to discuss terms with the bank can be very useful. However, consult with a knowledgeable lawyer to ensure you have the correct documents before asking the seller to sign anything that might conflict with Oregon law.
Your people skills are crucial throughout this process. The bank may take several days or even weeks to respond to offers and proceed with the process. They often request additional Broker Price Opinions (BPOs), adjust appraisals, and may bring in different negotiators at times.
It can be very frustrating, so prepare yourself and try not to stress.
Get fully approved for any loan you plan to use well before making an offer. Ensure your lender is able to close quickly, because once the short sale is approved, you’ll need to be ready for escrow immediately.
We secure properties via short sale, and we work with many investors and buyers who are looking for great deals on properties in the Portland/Salem area.
Feel free to call us at 503-577-3077 or reach out anytime to learn how we can assist you!