Short Sale Buying Process in Minnesota
ByIf you are a buyer ready to put an offer on a short sale listing in Minnesota what should you expect your buyer’s agent to ask the listing agent?
The very first step to buying a short sale property - even before one showing - is to be approved to purchase the property non-contingent on selling your current property (if you own one). Purchasing non-contingent means you can buy a MN property without selling the current property you own. Contingent offers are often rejected by short sale listings and REO listings alike. The seller needs the buyer to perform on time, regardless of selling other real estate. The real estate agent representing you as the buyer in Minnesota should acquire answers on the following:
- How many lien holder(s) (or lenders) are we negotiating with?
- At what stage we with in the short sale process in Minnesota?
If the listing agent cannot communicate an answer to these simple questions he or she may not know what is going with the seller(s)’ file. However, that does not mean that agent is not trying to get the property sold. He or she may be using a third party to do the negotiations. If the listing agent is using a third party to negotiate the short sale he or she should express that to the buyer’s agent. The MN Short Sale Team always negotiates the terms of a short sale direct in our local Minneapolis office.
If you submit an offer to the seller(s), what comes next?
If the MN Short Sale Team receives an offer with terms that are acceptable to the seller(s) we will “pend” the listing, collect earnest money, and negotiate final written short sale approval with the bank via a discounted payoff letter. Any offers we receive after executing one become back-up offers should the buyer decide to back out. If the buyer chooses to do an inspection the inspection period begins after written approval of the sale from all lien holders is received. If the property passes inspection and no other issues arise - we close!
Not all Minnesota agents or brokers process short sales like we do, and these are not steadfast rules. If you have questions about buying a short sale home for sale in Minnesota please contact us.
