Alex Silva negotiates short sales for sellers and can help you check a listing and plan your offer.
Is buying a short sale a good idea?
It can be, if these fit you.
- You can wait. You have a place to live until closing.
- Your financing is solid. A current preapproval, or cash.
- You can buy as-is. Budget for repairs yourself.
- You can cover some costs. If the sale doesn’t close, your inspection and appraisal costs are usually yours.
A short sale isn’t always cheaper. The lender orders its own valuation and may ask for more, so base your offer on recent sales.
New to buying? Start with first-time buyer basics.
How the short-sale contract works for buyers
The standard Florida Realtors/Florida Bar short sale addendum works like this unless other dates are written in.
- Lender approval comes first.Nothing closes until every lienholder approves the price and terms.
- There’s an approval deadline.No approval 90 days after the contract date? Either side can cancel in writing. The contract ends on its own 30 days later, or if a foreclosure sale happens first. In each case, your deposit is refunded.
- Your clock starts at approval.Your inspection and loan periods begin when you receive the approval. Closing is 45 days later.
Read the listing, then keep your loan ready
“Subject to lender approval” usually means there’s no approval yet. For an “approved short sale,” ask to see the letter and its expiration date.
Short sales tend to move faster when the seller’s agent sends a complete file and every lien is known.
Preapprovals and rate locks often last 30 to 60 days, and a short sale can take longer. Ask your lender when to lock, what an extension costs, and which papers to update.
Florida law can make you owe HOA or condo dues the seller didn’t pay. Your title company can get the estoppel certificate showing what’s owed.
Ask the listing agent
- Has the seller’s short-sale file gone to the lender?
- How many liens are there, including unpaid HOA dues?
- Is a foreclosure sale date set?
Alex Silva, broker
Voyance Real Estate is led by its broker and owner, Alex D. Silva, who has more than 30 years in real estate and holds Florida broker license BK3153327.
Short-sale negotiation is his specialty: lender approvals, second liens, and valuation disputes.
He works with homes, condos, rentals, and commercial property across Central and South Florida, in English, Spanish, and Portuguese.
Short-sale buyer questions
How long does it take to buy a short sale in Florida?
Often months, and no one can promise a date. Some loan programs give the lender a deadline to answer, like 30 days after a complete file on Fannie Mae loans.
Can I back out of a short-sale contract?
At certain points. You can cancel if there’s no approval by the addendum’s deadline. With the Florida Realtors/Florida Bar “AS IS” contract, you can also cancel during the inspection period, which starts after approval. If you cancel in writing on time, your deposit is refunded. Have a Florida attorney review your contract before you sign or cancel.
Can the seller take other offers while I wait?
Only if your contract allows it. If neither backup-offer box in the addendum is checked, the seller agrees not to accept other offers.
Background: CFPB: rate locks · CFPB: preapproval letters
General real estate information, not legal, tax, or financial advice.
Found a short sale you like?
Send Alex the listing. He’ll tell you what to ask before you offer.