What they are. Short sales....are really long sales in time. The short part is the owners problem in that the loan is short of what someone will pay for the house. One makes an offer, it can sit there for several months before a response from the bank.

Each bank seems to handle them differently, and the first and second many be with 2 different banks (that's more time). The buyers make offers get tired of the wait and go find another property. The bank is finally ready and the buyer is gone, Or worse is when you make an offer and wait a month or 2,3,4 months and a few days before they get to the file a higher offer or better terms comes in and knocks yours out of the place.  Lenders helping FHA buyers with 3.5 % down are frustrated because the bank will pick the one with more money to put down and FHA gets the last place in line to be chosen.

I have had 2 short sale listings and 1 short sale buyer. And we all survived, houses got sold and bought and they got good deals on prices like back to the value that it was several years ago, in 2003 and 2004. If you have the ability to try it and wait the short sale may be for you.  The good interest rate is what often upsets the short sale person waiting. They think.."I am missing out waiting here and that pushes them to find another property.

Sometimes we see a short sale where the bank has already gotten word of the price they will take. I like those because a lot of the wait is over and you can step in. It also means they had an offer that fell through. Rarely is it the fault of the house either, more common is that the buyer found another one. There are some agents and lender/agents(don't get me started on those) who are letting greed take over their behavior. They want to take the whole pie instead of a slice.

More short sales are out there now than ever and it is a definite major part of the inventory. It is like a bank owned in that there is little to no money to ask for any repairs. Termite work is also rarely included and part of the expense the buyer will have to take on. Prices vary on that. 2 to 4 thousand is common. Again, that is nothing to the deal on the house saving easily 40,100, even 400 thousand dollars from the amount the owners paid for it.I wont even talk about millions but that too is happening. Monopoly anyone?For example, in Redondo Beach, one short sale closed just under 450K and the prior owner paid 800K.

The bank owned properties are getting multiple offers and selling fast wherever they are. People will look up bank owned Torrance, Manhattan Beach, Hermosa Beach and all the nearby areas to what we call the South Bay. I doubt they will look up short sale Redondo Beach or Gardena.