Short Sales

With many homeowners stuck "upside down" in their homes due to declining home values and a declining buyer pool, the Short Sale when done correctly could be a win-win for everyone involved. I have done numerous Short Sales this year and think I am finally getting it down to a science. Short Sales are not right for everyone but they are right for more and more homeowners with each passing day. A short sale will have a somewhat negative impact on the homeowners credit but not nearly as negative as a foreclosure. I actually had a seller who did a short sale and closed on a new purchase six weeks later. The key to a successful Short Sale is to price the property at "fair market value" (the banks will not give the home away), have an agent who can get together all the documentation that the lender is looking for, and have the homeowner make contact with the lender and negotiate a deficiency settlement. The process takes an average of 30 days but I had one short sale approved in as little as 6 hours while another took 9 weeks. The key is to submit a full package and have the client communicate honestly with their lender. The lender would much rather short sale than foreclose. The short sale is a win for the seller since they are not forced into an embarrassing foreclosure, the lender wins since they don't have to deal with a lengthy and costly foreclosure process, and a win for the buyer because they are typically getting a very good price in contrast to comparable homes.