So....What Is A Short Sale?

A short sale is when a lender that holds a "deed of trust" on a property accepts less than the full amount due on their loan when the property is sold. Sometimes it is more cost effective for the lender to accept a lower payoff than to bear the costs and liability of a foreclosure. One of the biggest misconceptions is that a short sale is a GOOD DEAL.......Well, typically their not, usually the seller owes more that the property is worth.

NEGOTIATING WITH THE LENDER

As a realtor it is meaningless (& ridiculous) to market a property as a short sale without getting written short sale approval from the lender. Not every short sell is a hardship, which is critical to the process. A hardship being defined as a divorce, job loss, etc....If the lender does not accept the hardship they will foreclose. So, as a buyer you are interested in making an offer on a short sale, the very 1st question to ask the listing agent should be. Do you have Short Sale Approval From The Lender in Writing! If the answer is no then, RUN! The likelihood of it being approved will be about zero to none.

So, Do I Or Don't I Buy A Short Sale Property?

Well, that depends on your situation and whether you have the time to gamble. A successful short sale depends on cooperation from everyone involved in the transaction. The Lender(s), Sellers, Buyers, and Realtors. There's so much inventory on the market that you don't have to buy a short sale, to negotiate an equitable purchase.

note: Short sells are very complicated , I could be posting for days on all the aspects of this particular type of transaction. The above is a brief outline, so do not hesitate to contact me for any additional information or questions. If you are in a situation where you may need to sell your home, contact me for a private consultation.