What is a Short Sale?

Short sales are becoming more common in today's market because some home owners owe more on their mortgage than the home will sell for. In a short sale the lender, or lenders if there is more than one mortgage, is willing to accept less money than is owed to pay off the mortgage(s). The home is then sold "short" of what is owed. This allows both the home owner and their lender to avoid the expensive and devastating prospect of foreclosure.

The lender is not required to accept a "short sale" offer and often takes a long time to come to this decision. In most cases short sales are anything but "short". It usually takes much longer to receive an acceptance to your offer than would normally be the case. We may be talking weeks or even months instead of days. They are not for everyone; but sometimes offer an opportunity to purchase a home at a slightly less than market price. The homes are almost certainly sold "as-is" and frequently involve some deferred maintenance.

The bank involved is sometimes willing, and often eager, to continue to look at and accept other offers from different buyers until a written acceptance is obtained. As stated already, this may take some time to receive. This type of purchase is not for the faint of heart. Disappointments often occur. It is so very important to have a Realtor working for you who can guide you through this process. If you don't like surprises then a more traditional purchase may suit you better.

If you would like to discuss the opportunities available to you in this market we are ready to assist you. Whether it's a short sale, a foreclosure or a traditional sale it pays to know what's involved before you make the leap. There are also many financing opportunities that should also be discussed. Call us. We can help.