The term “Short Sale” could not be more misleading. To those new to this term, you might think to yourself, “Here is a home in not so great condition. The price is lower than other properties I have seen. Sure, it needs a little work. I could offer full price, still have some money to clean it up, and I bet it would be a done deal!” We wish.
Short sale sold by Natalie September 2011
Yes, short sales are a way for you to find a great deal. Yes, you may have to put in a little work to get the home back in tip top shape. Yes, short sales are a real option for you as a buyer. But, you will have to be patient.
Short sale sold by Melody September 2011
So, the short and sweet explaination. Short sales are transactions that result in the bank taking less than the seller owes on the home. This makes the transaction extremely complicated as you now have the seller’s lender to try and satisfy, not just the seller (and your lender!). As you can imagine, the bank is not interested in losing money. The bank has a bottom line that they flat out will not except less than. Unless there has been a previous offer on the home that was accepted by the bank, there is no real way to know what that number is. After making an offer, you will often hear back from the seller promptly. Waiting for the bank’s consent, however, may prove to be one of your great life lessons in patience 😉 In an effort to keep things short and sweet as promised, I will recommend you visit here for a more detailed explaination of the short sale process.
Short sale sold by Natalie July 2011
Complicated stuff. But not at all impossible. We have closed short sales in a matter of weeks, and others have taken months. Understanding the process, and trusting that your agent is doing all that they can to help the process along (insert Get Moving gals here), is what will make the process enjoyable. Because after all, you are making one of the biggest and most important purchases of your life! Your home! And that is what keeps us all jazzed up 🙂
Happy Wednesday! – Melody & Natalie