Short sale, OMG, LOL or ROFL aren’t 21st century terms that are going away any time soon. In today’s world, the term “short sale” has also become as common as “milk” or “bread”. Just like learning the language of texting, understanding what short sales are and how they work take some time and “continued education”. As a buyer, a short sale can be a tedious process that ends with a disappointing result. However, as a seller, the toll it takes is much greater. Yet in today’s volatile real estate market, there are mixed signals being sent to both buyers and sellers as to which approach is best for them.
If you are a buyer, the first thing to consider before making an offer on a short sale is time. Do you have the time to go through the entire process, from beginning to end, and risk not actually purchasing this particular house? This is a very important issue as it could take months to finalize all of the details and your life, and the life of all the other parties involved will be nicer if everyone is on the same page. Another consideration of time is who is truly involved in this transaction. Is it as simple as the seller and a mortgage company or is it a seller, a mortgage company, an investor, a second mortgage company, three second cousins, a dead aunt and the garbage man? Make sure you do some preliminary research and ask some basic questions before making an offer. Some due diligence on your part will go a long way to make a hectic transaction slightly smoother.
If you are a seller, you have some things to consider as well. First, why are you looking to short sale your home? Do you have a real and valid hardship? Please remember, this hardship can’t be just because your home is not worth what it used to be. There has to be a real hardship that can be proven. Have you taken the time to speak to an Attorney regarding any legal issues that might arise? Have you spoken to a CPA regarding the tax effect a short sale may or may not have on you? Are you working with a professional Realtor who has taken the time to become Short Sale Certified and who understands the process of a short sale? Once again, due diligence on your part will save you more hardship and pain which could result in an undesirable conclusion. So when you’re kids start throwing out all their cool new words, you can respond with “short sale” and neither one of you will have a clue what the other one is saying!
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