Tips for Buying a Short-Sale House in California

Thinking of buying a short sale home in California? Here are some tips that can make your purchase as smooth as possible.

Knowing about Short Sale:
You need to know more about short sale and difference between short sale and other sales (regular sale & reo sale). Whether it’s the right buy for you or not. If you want to buy as soon as possible and cannot wait couple of months then short sale is not the right choice to write an offer. But if you can wait couple of month then look for short sale homes also in your search criteria and ask your agent to show short sale listings also.

Get Pre-Approval:
This is important whether you are writing offer to short sale or other type of listings. Pre-approval will make your offer stronger and gets higher priority than others who are submitting without pre-approval. So, make sure you are pre approved with a good lender before your home search.

Time Frame:
It takes time to know the final approval from the seller’s lender after you submit your offer, may be 1 month, 3 months or more. You need to have patience to wait that long for your dream home.

Offer Acceptance:
Even though, seller accepts your offer, doesn’t mean that your offer has accepted and you can move forward with that offer. Once you submit the offer, the seller’s agent forwards to the seller’s lender for final approval. The lender may accept it, reject or counter back to you with their price based on their own appraisal price.

Other Liens:
If other liens like HOA, tax liens and others where the seller owes to those lien holders, could also be a hindrance to the final approval of the sale. Most of the time, bank approves to pay all the liens but sometime they don’t, in that case either the seller or buyer or both needs to contribute to get that good deal.

Writing Offer:
Write a good offer based on the market value, don’t think that it’s a short sale, you can write a ridiculously low offer and bank will accept it. No, once you submit the offer, bank will also do their part by ordering appraisal to check the market value. They compare the appraisal value with your offer price. If you really like the house then write your best offer so that you can have higher chance of getting that house. Now, write only for those houses which you really like and not all short sale listings.

Check Listing Agent:
Check whether the agent representing the seller has experience in short sale or trained /certified agent in short sale, this shows that the agent can handle the short sale correctly from the beginning itself from submitting the package to getting approval from the lender. If the buyer side agent is also experienced is short sale then that would be a plus point to the buyer. You can find a licensed California real estate agent at Realtor.com or by going to any of the major real estate firms in your area to interview an agent. Find an agent with a diverse marketing plan who has a proven track record of success.

Follow up:
You need patience, once you submit your offer, don’t call your agent every other day for the status. The lender takes time depends on their work load to order appraisal or BPO (Broker Price Opinion) to determine the market value. This process itself sometime takes 30 days and another 30 or more days for final approval. But make sure, you ask your agent to follow up with the listing agent every other week or so for the latest update if any.

Backup Offers:
If you really like the house and somebody already wrote an offer, then ask your agent to submit a backup offer, if they are accepting the backup offers because sometimes the first buyer may walk away from the deal due to long waiting period or due to some other personal reasons.

Terms & Condition:
All the short sale listings are “As-is” sale, but that doesn’t mean you have to buy a house without any inspections. You have the right to do all the inspections but the seller will not fix anything if there’s any repair. It depends on you whether you are satisfied with the inspection reports and repairs(if any).

After getting the approval letter from the lender then work on to remove your contingencies(inspections, loan approval) and submit your initial deposit to the title within the specified time so that you can close the escrow on time and move to your home. Buyers, you can get a deal with a short sale, but it comes at a price. If you have the time and the patience you could be rewarded handsomely.

Going Online for Comparing California Auto Insurance Quotes

When buying auto insurance in California, you need to understand the stipulations concerning the coverage of drivers. The rationale of this, obviously, is that everyone is expected to be accountable in the case of an accident. According to California state laws, all drivers need to have auto insurance. In order to secure affordable car insurance, you must be willing to take the time to compare California auto insurance quotes. This can be done easily and without too much time or effort online at an insurance comparison site.

Certainly, you can go to different insurance company in California, or can go to individual websites, and you will still be able to comparison shop in this way. However, if you are on a time crunch, like so many busy people are today, you can save time and energy by utilizing a convenient insurance service company that allows you compare rates all in one place. There is never an obligation to purchase, simply an easy way to look around and view different California auto insurance quotes.

There is certain information that will be asked of you before you can receive accurate California auto insurance quotes.  While handing out personal information online should be done cautiously, you ought to know that there is no possible way to receive an accurate quote without disclosing some information about yourself. Different areas of California are charged differently for the same amount of auto insurance coverage based on the riskiness of the specific location you call home.  Your age is another factor, as is your driving record. Information like this will be requested before you can view quotes from different California auto insurance companies. Fortunately, many databases like this are state-wide so you can look for insurance quotes no matter where you live in California.

As you are given access to varying California auto insurance quotes, you must consider what you get for the asking price and not simply the price itself. The amount of coverage you choose is a huge factor in what your different California car insurance quotes will look like. Remember, it is illegal to drive without car insurance in the state of California, so you must choose to have at least minimal coverage if you want to drive without fear of strict consequences if you are caught.