Looking for a good deal in La Quinta? La Quinta and the surrounding area have a lot of distressed property, making it hard to avoid short sales when looking to buy. Short sales can provide buyers with great deals! Consider buying a short sale but be prepared to be patient and it's a good idea to know the process ahead of time. In a short sale, the property is upside down, which means the seller owes more on the mortgage than the property's value. The short sale seller and buyer enter into a sales contract, but the seller is not obligated to sell unless the seller's lender accepts a loan payoff for less than what's owed.

Here are some tips to help ensure your short sale purchase in La Quinta is a smooth ride:

• Work with an experienced short sale Realtor in La Quinta: One of the best things you can do in a short sale is hire a qualified Realtor to guide you through the home buying process. Look for someone who is certified and ask them how many short sales they have successfully completed.
  
  
• Do your homework: Gather and review as much information about a transaction as you can before you write an offer to purchase. With your Realtor, determine what price the market will bear. A transaction with a sales price at market value is more likely to be approved by the short sale lender than a sales price below market value. Your Realtor should also find out what interests affect title to the property. A transaction where only one lender must approve the short sale is less problematic than a transaction where both senior and junior lenders must approve the short sale. Also ask your Realtor to check with the homeowners association to see if the seller is current on the monthly payments. Another good question is to inquire if the seller is current on property taxes. 
   
  
• Understand the timing: The timing of a short sale transaction can be frustrating and tricky. Things can start off slow, but speed up quickly at the end. Once the seller accepts your offer to purchase, you may wait a few weeks to a few months for an approval from the seller's lender. As the buyer, other than asking for status reports, it may be difficult for you to speed up the short sale approval process. Before agreeing to give up the collateral for its loan, the lender may take its time to review the seller's financial position, the property value, and the terms of the sale, among other things. Once the lender approves the short sale, escrow is opened and the normal escrow timeframes begin. To make sure you succeed in your short sale transaction, be prepared to wait a long time for the lender's approval, and then perform quickly thereafter. Patience and persistence will serve you best.  
  
  
  
• Manage your expectations about the property: In a short sale, the property may be in excellent condition, but in some cases the distressed homeowner may forego maintenance and repairs. As the buyer, you may ask the seller to make certain repairs or do other things before the close of escrow but there's a good chance you'll have to take care of those things yourself. Given the seller's financial situation, the seller may be unable to take care of the repair items. In addition, the seller's lender who has already discounted the payoff typically is unwilling to discount the payoff further to take care of the repair items that you request.

In most cases a short sale is a new experience for both the seller and the buyer but working with a knowledgeable short sale Realtor is a key to success. Understanding the overall process of a short sale before jumping into the game will help you be more prepared.

Contact me today for a no obligation consultation on buying short sales in La Quinta.

_{*2010 California Association of Realtors (C.A.R.) The information contained herein is believed to be accurate as of May 24, 2010. It is intended to provide general answers to general questions and is not intended as a substitute for individual legal advice.}