First Home, First Loan

Helping to make home ownership a pleasant reality
Find A Mortgage Now!
Find A Realtor Now!

Free Newsletter

The Real Estate Report


Get Your Free Copy:


How to Buy a Short Sale, Part 1

posted by MatthewDickason @ 1:04 AM
Monday, June 10, 2013

There are many deals to be had out there right now as a home buyer. Some of these deals include realtors advertising homes as a “short sale.” But be warned, a potential short sale buyer needs to have one specific and important trait; patience. A short sale happens when the seller’s lender is willing to accept less than what is owed by the borrower, thereby releasing the lien it holds on the property. This can result in a tremendous deal for the buyer. However, the short sale process can often take 6 to 8 months to complete, and in some cases even longer.
The reason for the sometimes lengthy process is that lenders are not in a tremendous hurry to realize a substantial loss on these loans. In fact, many lenders will not even consider allowing a short sale until they view the seller as a foreclosure risk. A “red flag” for the lender to realize this risk is when a borrower misses a payment or two. Once the first mortgage payment is missed the lenders begin to call and send letters of delinquency. During the missed payment period, some borrowers will hire a realtor to try and sell their home. These realtors, normally a Certified Distressed Property Expert (CDPE), can compare the values of other homes in the neighborhood and set a sales price. Once a reasonable offer is received by the seller, the CDPE, with the help of the closing attorney, will submit the short sale package to the lender. The package includes information to let the lender know that the seller is going through a financial hardship. Accompanied by the declining home value, this may encourage the lender to let the sale go through at a price less than what is owed, rather than risk an even lower amount in foreclosure.


Matthew A. Dickason is the firm’s founder and Managing Attorney. In 2003, he received his J.D. from The Walter F. George Law School at Mercer University in Macon, GA. A member of the Georgia Bar, he created Matthew A. Dickason, P.C in 2007 to focus on residential, commercial and small business loan closings. As Chief Financial Officer of the U.S. Screen Company, a family manufacturing company based in Sullivan, Ohio, Matt draws on his experience to advise small to medium sized companies in all facets of business and corporate law. In his spare time, Matt enjoys being a Dad and serving as legal counsel and board member for The Hospitality Education Foundation, a non-profit organization that bridges the gap between Georgia’s high schools and hospitality industry.

More Posts - Website

Comments are closed.

First Home, First Loan is proudly powered by WordPress