Logan Utah Short Sales For Sale
Search Logan Utah Short Sale Listings Below - A short sale is a complicated process due to the unregulated and unstandardized policies of many of America's banks. We are Certified Distressed Property Experts at the Platinum Real Estate Group who can help you buy and sell Logan Utah short sales. If you need to sell your home short, please contact us so we can submit your short sale paperwork immediately. View Logan Pre-foreclosure listings on the MLS below or you can view Logan Utah foreclosures by following that link:
Short Sales & Pre-Foreclosure Homes Logan Utah
Logan Short Sale Listings Last Updated 3/19/2011
Logan Utah Short Sale Buying Process
When buying a Logan Utah short sale property, one thing you have to keep in mind is, buying a short sale is a process that's different from buying a normal Logan Utah real estate listing. A short sale is a listing that is being sold for less than what the owner of the property owes to the mortgage holder. In order for the seller to sale short, the owner or investor of the mortgage (usually a bank) must approve the price offered by a buyer. In order to get from submitting an offer to the closing table, there are many factors that can disrupt a short sale deal. Here is detailed description of the complete short sale home buying process:
Jump To Common Short Sale Buying Questions:
- Finding Logan Utah Short Sales
- How To Submit An Offer On Logan Utah Short Sales
- Logan Utah Short Sale Approval Times
- How Does Due Diligence Work When Buying Logan Short Sales?
- Can You Withdraw A Short Sale Offer?
Finding Logan Utah Short Sales
There are a couple ways for you to find Logan Utah short sales available for purchase. We update this page once a week with all new short sales that hit the market. You can also contact one of our Logan Utah Realtors and ask to be setup on automatic listing alerts. We will send all new short sale properties to your inbox as soon as they hit the market.
Once you have your favorites list of Logan Utah homes that are short sales, we can take you out to view them as long as they are listed on the MLS. As real estate agents, we have access to show you any property listed. It's a good idea to stick with one real estate agent as they get to know your housing criteria and can be on the look out for short sale properties that meet your needs.
How To Submit An Offer On Logan Utah Short Sales
Submitting an offer on a short sale property is similar to writing an offer on any other property. Your first step is to do your due diligence. You want to offer a price that the bank will accept, but you don't want to offer to much. In order to determine the price of your offer, it's best to have your experienced short sale agent do a competitive market analysis (CMA) on the selected property.
There is a common misconception that banks will sell short sales at rock bottom prices. It's absolutely not true. A bank is in the business of making money. Before they will accept your offer, the bank will have multiple parties submit price comparisons so they have a good idea what the true market value of the property is. They will have a professional appraisal submit a full blown appraisal and numerous Broker Price Opinions (BPO's) submitted by real estate brokers before they accept any offers.
Submitting extremely low offers on a short sale will usually fail and here's why. Short sale listing agents usually price the home on the MLS lower than the property is worth which is lower than the bank will actually accept. They do this to get more activity on the property so their clients (the sellers) don't go into foreclosure as a short sale is usually the last option before foreclosure. The lower they can price the home, the more offers they will receive. I can't tell you the last time I submitted an offer on a short sale and there weren't multiple offers already on the table.
So, when submitting your offer on a Logan Utah short sale home, be sure to make it competitive if you truly want to close. If your're an investor just looking for a great Logan investment property, I would recommend you submit offers on multiple properties. You may not get very many bites, but it's a good tactic to see how low a bank will go on an offer approval.
Logan Utah Short Sale Approval Times
After you submit an offer on a short sale, you have to play the waiting game. Banks are in no hurry to approve an offer as they want to get as many offers as they can. Plus, many banks are national which means they have a whole lot of paperwork to deal with.
With the amount of distressed homeowners in America today, banks are back logged with months of paperwork. This means that a bank approval can take anywhere from a month to a year. Yes, it can take up to a year for you to get your short sale offer approved. Here is a typical process the bank goes through when they receive a short sale offer:
- Bank Acknowledges Offer - 10 days to a month.
- Short Sale Negotiator Is Assigned - 30 to 60 days.
- The BPO Is Ordered - Banks won't share this information with you.
- Second Negotiator Is Assigned - This can take another 30 days.
- File Is Sent To Review By Tha PSA - A PSA is the holder of the investment.
- Bank Issues Counter Offer Or Approval Letter
If the bank counters your offer, it's usually as low as they will go. You can either accept it or move on to another property. If they accept your offer, you can now move onto your due diligence period. Once the bank approves your offer you still have time to do your normal due diligence such as a home inspection and appraisal.
How Does Due Diligence Work When Buying Logan Short Sales?
Your due diligence period, when buying a Logan Utah short sale property, should be specified within the contract you submit to the bank. For example, if I'm representing the buyer, I give them two choices. We can wait for the bank to approve the offer and then do our due diligence, inspections, appraisal, etc. Or, we can due the inspection up front while we're waiting for the bank to get back to us on the offer.
Each has their advantages and disadvantages. If you choose to wait until the bank approves your offer, you might find something wrong with the property, and at that point you've wasted months waiting for the bank. However, you didn't have to spend any money upfront.
The second option is my preferred method. Doing an inspection up front gives you a chance to negotiate repairs into your offer. It also gives you confidence in your offer before waiting months to get an approval. If you do the inspection upfront, you know the problems with the property, and if you find out something major is wrong, you can back out and move onto the next property. But, you will be out the few hundred bucks you spent on the inspection.
Either of these techniques are fine, but keep in mind, short sales are long and grueling process to get closed. If you're thinking of buying a Logan Utah short sale property, keep in mind that it takes time. If you're in a hurry to buy, a short sale probably isn't a good idea. If you have the time to wait, a short sale could be a great investment.
Can You Withdraw A Short Sale Offer?
Let's face it, being patient sucks! LOL - A short sale approval can take many months and some even last up to a year. Waiting for that long can be stressful, annoying, and down right ridiculous. I've seen it happen many times where a buyer didn't expect things to be so difficult and they decided they wanted to back out.
So, can you withdraw your offer if you get fed up with the banks? The answer is almost always yes, but you have to take the right steps to keep yourself and your earnest money protected.
When submitting a short sale offer, you have to submit earnest money, usually $500 to $2,000 depending on the price of the home. This money is a good faith offering to the bank that you can perform. Submitting earnest money can be done two different ways, and this is where having an experienced short sale buyers agent can save you money.
When submitting an offer, I will write into the contract the earnest money will be deposited upon bank approval. While an inexperienced short sale agent may submit the earnest money to the sellers agent as soon as they submit the offer. If done this way, your earnest money will be deposited into the bank, and you will forfiet that money if you withdraw your offer for no reason other than you're sick of waiting.
If you specify in the contract that the earnest money will only be submitted upon bank approval, this allows you to hold onto your cash until the bank approves your offer. This is advantageous to you, the buyer, because it allows you to walk away without any skin in the game if the process drags on to long. This is the best way to submit a short sale offer, as you can withdraw before bank approval at anytime without losing anything but your time.
You can also withdraw your offer if, during your specified due diligence period, you find problems with the home. Just like buying a normal Logan Utah home, buying a short sale still allows you an inspection period. If the inspection doesn't work out, you can withdraw your offer and get your earnest money back.
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Buying A Short Sale Property Explained
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The multiple listing information is provided by Wasatch Front Regional Multiple Listing Service, Inc. from a copyrighted compilation of listings. The compilation of listings and each individual listing are © 2017 Wasatch Front Regional Multiple Listing Service, Inc., All Rights Reserved.
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