A buyer entering the market these days is encountering a type of sale that so many before them never even knew existed.  It's called a Short Sale.

A short sale occurs when a sellers owes more on the mortgage payoff, than they will get for the sale of their home.   The mortgage holder(s) must have time to review the purchase contract on the property and decide if they will accept the short payoff.  Sometimes the owners are facing foreclosure after missing  mortgage payments.  Perhaps the owners are current on their mortgage, but are being relocated out of state, or out of the country.  Maybe the owners are divorcing.  Whatever the situation, the owners must sell and are facing that short pay off.

Should you be looking into purchasing a short sale?  If you have an open ended time frame on your move, then a short sale is a definite possibility.  If, however, you have have a definite date when you must be in your new home, you should probably skip this type of sale.  Short sales are known for delays, and sometimes, don't even make it to closing.

There is also a misconception that you can get a great deal on a short sale.  That you can pick one up well below market value.  I am here to tell that the banks want market value as much as Mr. & Mrs. Seller next door.  And in the current Northern Virginia market, there is no incentive for the banks to accept less than market value.  Homes are selling quickly.  There are only three to four months of inventory for buyers to choose from.  It's not the same scenario that buyers were facing last year when there was one year or more of inventory on the market.  The market is moving quickly, and it is to the sellers advantage.

Still not sure if you should be shopping for your home in the short sale listings?  Let's talk about it. 

Chris Ann Cleland, 703-402,0037, chrisann@lnf.com

Realtor, Licensed in Virginia

Short Sale Specialist, GRI