Buyers should also understand what makes a good buyer to ensure the process goes smoothly. Good buyers are patient, they have their financing in order and they do not have any contingencies.
Patience is required to keep the process flowing, since it can take time to get the approval of the lender on the sale. Even if there is only a single lien holder, buyers may end up waiting for some time for the approval to be offered. It can take longer to get approval on properties that have multiple lenders.
A good buyer should also have their financing in order for the best results. Cash offers are definitely attractive to lenders. However, even for buyers that are not able to pay everything in cash for the property, showing that the financing is in place is essential. For the best results, homebuyers should be preapproved for a mortgage. Buyers should also have a sizeable down payment so they are ready to close at any time. Being financially prepared will ensure that the short sale offer is viewed more favorable than offers from buyers that have financing that is not as secure.
Homebuyers should not have any contingencies to show themselves as a good buyer for the property. Short sales are not a good choice for buyers that have contingencies, such as needing to be in the home at a particular time or the need to close on a home being sold before purchasing the property. Flexible closing terms and “no contingency” offers are viewed in the best light by lenders deciding whether to allow the short sale transaction to be approved.