Many short sales never actually make it to a closing table.  There are many ways a short sale can fall apart.  There are also more decision makers than you would  see in a normal transaction.  It is important for all parties involved to have a clear understanding of reasonable expectations and the process.
In a short sale there are at least three separate decision makers.  The buyer, the seller, and each bank that has a mortgage on the property.  If any one of these parties does not agree with the negotiated terms through the contract process, the deal can not proceed. 

Many short sales have someone handling the process.  This person is usually referred to as a "short sale negotiator".  This is typically an attorney, listing real estate agent, seller, or a third party.  If you plan on having a successful short sale, it is important to find someone with experience in successfully completing these types of sales.  The better the "short sale negotiator", the better chance you have of making it to the closing table. 

The more prequalifying that is done, the higher the likelihood of a successful closing.  There are clear expectations that need to be understood for both the buyer and the seller to increase the likelihood of this successful transaction. 

Let's begin with the seller.  It is important to know the sellers overall financial situation.  The seller is also going to need to put a short sale package together.  Think of this package as a mortgage application of sorts.  The only difference is that the seller will be  explaining why he or she can't afford the mortgage.  It is important that the seller understand that the stronger they are financially, the higher the likelihood they will be asked to take a signature loan for the difference.  This is especially true lately with the second mortgages. 

The buyer needs to understand that it is highly unlikely that this  contract will close in 30 days.  It could easily take 90 - 120 days.  Depending on the banks involved and the number of mortgages against the property, I have seen some take up to six months.

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