I have clients who have heard about short sales and want to know if they should think about buying one. I only advise this if my client has no particular timeline to purchase. Why? It’s because I have seen short sale negotiations take as long as nine (9) months. In fact, I had one listing where I presented five (5) offers to the negotiator. After being unable to get the first and second mortgagees to agree on an offer, my client ended up filing for bankruptcy. Unfortunately, this was the best financial alternative to them, according to their attorney.
I think short sales can be a great opportunity for investors who can wait and wade through the negotiation process with the bank. In fact, for some clients we make multiple offers all at the same time and negotiate all of them simultaneously. Since banks normally do not sign the purchase and sale agreement in a timely manner, we have the flexibility to purchase only the properties where we can come to an agreement.
Of course, there is always the risk of working through negotiations and having another bidder make a higher offer at the last minute and get the property. Such is the pitfalls of a free market.
In Forsyth County, Georgia there are a number of opportunities available in real estate, mainly because the market here was so hot for so long, it caused a significant increase in property values.