Some time ago I ran across the below information on making an offer for a short sale property and thought it would be beneficial to pass on to others. By the way, last week the San Diego Union Tribune had a great map of the highest foreclosure areas in San Diego County.
So, If you are making an offer for a short sale property:
• Be sure you make the offer contingent on the short sale being approved by the lender and set a time frame for approval
• An addendum form (statutory in California) is advised to outline the short sale contingency terms and conditions
• A letter to the seller is also advised requesting written confirmation that the lender has received the hardship letter and other documents as part of the short sale application
• There is a good chance there will be more than 1 offer
• It is still ESSENTIAL to conduct a home inspection even though the lender will probably require an "as is" sale – you still want to know what you are buying and what repairs need to be made
• It is possible the seller will not be able to do any Section 1 repairs resulting from the Wood Destroying Pest Inspection (e.g., termites) due to hardship of funds.
Be sure to discuss issues and questions with your agent before proceeding, preferably someone who has some experience with short sales.