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How to Buy a Short Sale in Greeley, Colorado

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Short sales have been decreasing in the Greeley area along with REOs and HUD homes, but there are still short sales available. Short sales are handled much differently than a fair market sale or a REO, but can be a great deal for buyers. The key to completing a short sale transaction as a buyer or seller is having a great real estate agent help with the transaction.

What is a short sale and how does it work in Greeley?

A short sale listing is a home that is for sale, but the current owners of the home owe more to the lien holders then they can sell the home for. In order to sell the home, the owners have to get the lien holders to agree to take less money to pay off the loans on the home than what is owed on those loans. Short sales have become much more common in the last five years due to the high level of defaulted loans. Banks and mortgage companies have realized that it is cheaper to accept a short sale than to bring a home through the foreclosure process.

How can buyers purchase a short sale in Greeley?

Almost all short sales are listed in the MLS system which can be accessed by real estate agents. Most listings in the MLS are also listed on sites like www.zillow.com. Short sales are often listed for prices much lower than similar houses that are not short sales. There are many reasons for the lower prices which I will discuss later in this article.

A buyer has to submit an offer on a short sale through a real estate agent and many times short sales go under contract very quickly. It is very important that buyers have a great Realtor who can act very quickly for them. The market is extremely competitive in Greeley and homes are selling very quickly.

How does a short sale transaction work in Colorado?

The reason short sales can be priced so well is because the buying process is much different from a normal sale. When an offer is made on the short sale, the owner of the home can accept that offer, but the lien holder must also approve the offer. The seller can accept the offer in a day or two, but it can take weeks or in some cases months for the lien holders to accept the short sale contract.

In Colorado, no party is bound by the contract until the lien holders approve the contract in writing. Even though the buyer and seller have a signed contract, the short sale addendum says either party may cancel the contract at anytime until the short sale is approved by the lien holders.

Because it can take so long to buy a short sale and there is no guarantee the banks will accept the contract price, short sales are often priced lower than similar non-short sales. You can get a great deal on a short sale, but you may have wait a long time before you know if the bank will accept it or not.

Will the seller make any repairs to a short sale?

In most cases short sales are sold in as-is condition. That means the seller or lien holder will not make any repairs to the property before it is sold. In most short sale transactions, the sellers do not have a lot of money to put into the home and they are not receiving any money from the sale of their home. Because the sellers are not getting any money from the sale, they are usually not very excited about putting any money into repair items.

How can you finance a short sale in Greeley?

You can finance short sales the same way as you can finance a regular sale, but remember that you will most likely not be able to make any repairs. If a home is in poor condition and will not qualify for financing because of the condition. You probably will not be able to get financing on the home. If you need to finance a short sale with a FHA, USDA or VA loan the home needs to be in good condition.


Short sales can be a great deal, but you need to have great Realtor who can help you write the contract and give you the best chance to close on a short sale. Our team has over 84 years of combined experience in the Greeley area and we specialize in distressed properties. Give us a call or email and we will be happy to help you find a short sale or another great deal in the area.

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Call us at 970-573-6441 or

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