Short sales, foreclosures require more planning from buyers and their real estate agents

If there's one thing buyers need when it comes to short sales and foreclosures, it's patience.

In fact, some Realtors have obtained special training and certification designed to help buyers navigate these complicated real estate transactions.

"There are so many short sales and foreclosures on the market ... we really need the experience and need to know what we're dealing with," says Wanda Duncan, a broker/associate with Realty Executives of Cape County. "You represent the buyer and you have to let the buyer know what the steps are and how long it's going to take. It's not a 30- or 45- day closing -- sometimes it takes months. You have to be sure to counsel the buyer: How bad do you want the property, and are you willing to wait for it?"

To get her short sales foreclosure resource specialist (SFR) designation from the Missouri Association of Realtors, Duncan completed eight hours of classroom training in Springfield, Mo., plus additional courses online. She says there aren't as many foreclosures and short sales as there were during the worst of the recession, but they remain everyday real estate transactions.

Loretta Kincaid, director of programs and a certified foreclosure intervention specialist at 4-Sight Counseling in Cape Girardeau, says a couple years ago she'd work with up to 60 clients per month, but that number is down to about five clients per month. Still, Southeast Missouri has had a number of large layoffs in the past several months, and it could have an effect on the housing market, she says.

"In our area things have stabilized a little bit ... but we still see foreclosures every day. We will always see that," adds Beth McFerron of Exit Realty in Cape Girardeau, who also has her SFR certification. "Look what happened to us here with Spartech and NARS (layoffs). We have great interest rates, but things in the economy could affect these people. There is not a set rule. But Southeast Missouri is pretty constant, and we have great lenders who are willing to work with you."

Buyers considering a foreclosed or short sale home need patience for a drawn-out transaction. They also need to be prepared for the hidden costs that often come with these types of sales, says Duncan.

"Most foreclosure companies don't have the resources to repair or fix anything. They're there to sell. Unless you have extra money available, you'd better look real close at your finances," she says. "If you ask them to do a pest inspection or treat for termites, chances are they're not going to do it. ... You are buying as-is. You can pick up some really good property on foreclosure, but it may need paint, wallpaper removed, new carpet -- and those are the good properties. Most of the time the people leaving those properties are mad because they're being forced out, and they'll literally tear the house apart. If you're buying a foreclosure, be aware. Don't be asking the company to fix anything, because they're there to sell, and that's it."

She strongly advises getting the home inspected with a licensed inspector. You will have to pay for it, and it's not going to make the foreclosure company fix anything, but you need the inspection for your own peace of mind and so you know what it's going to take to bring the house up to code. Also remember that you may run into unforeseen problems later, and you'll need money to fix those problems, as well.

Duncan, McFerron and Kincaid all recommend working with a full-time Realtor, especially one who has experience with short sales and foreclosures. An experienced Realtor can help you figure out the out-of-pocket expenses you'll have with one of these homes, says Duncan, and they're also a great liaison among the buyer, the bank and the foreclosure company.

At 4-Sight Counseling, Kincaid says she specializes in working with all the parties involved in a short sale and foreclosure, and making sure the paperwork is done correctly.

"It's very advantageous to work with a full-time Realtor who knows about prices and values," she says. "The Realtor's thing should be to sell the house. Where I come in is working with the lender to get a listing that the Realtor has come up with -- we want to make sure that gets to the right people at the bank."

As for sellers, Kincaid says it's best to ask for help as soon as you think you have a problem.

"What I recommend first of all is if you think you're in trouble, call a full-time Realtor and get a value of your property, then call me so I can look at your budget, see where you're at, and contact the lender before you get in trouble," she says.