Since short sales have become fairly common, and you may decide to put an offer in on such a property, there are some other things to know.

Read my post on Activerain for more details. You may find some of the agent comments useful, too.

Jeff

I can't speak for other states, since they may have different requirements, but when making an offer on a short sale here in CA there are some things to know about the paperwork. Not a lot of new docs, but important stuff!

There are a good number of homes here for sale that are, or very likely will be, short sales - the amount the sellers can SELL FOR (market value) is less than what they owe. There are a number of reasons why this happens - that's a subject for another post. So you will likely come across some of these homes in your searching...but don't be mislead into thinking these are not worth your consideration, as some are really great properties.

Your agent will help you fill out the standard paperwork (the 10- page RPA or Residential Offer to Purchase, which includes the 2-page Buyer's Inspection Advisory), agency disclosures, and Wood Destroying Pest Inspection addendum. You really should have your PRE-APPROVAL (IMO is it always important to submit with an offer) too, and your depoist check. (NOTE  - I have a list on my website of the standard documents that are part of a buyer transaction - my Buyer Forms Checklist)

Two important additions:

• The PAA - the Purchase Agreement Addendum with box #5 checked (for short sale)
• Not required but advisable - a short letter requesting confirmation that the sellers have submitted the paperwork, hardship letter, etc. that their lender requires as part of the short sale, and if not, when they expect to do this (set a due date in the PAA). This can hold up the process if not done in a timely manner. The bank will have a checklist of things they require and you want to know what those are.

Your agent can provide more information about things you should know. But please ask if there are any questions and I will post the response.

Have a great weekend!

Jeff