Short Sales NOT For Those With Calendar Deadlines

Short Sales NOT For Those With Calendar Deadlines

Copyright (c) 2012 Deanna and Jim's GOLD Team

    A buyer hearing the phrase "short sale" might conclude that this would be just the kind of home he/she needed if they had a looming calendar deadline (perhaps expiration of a lease).

    Unfortunately, the opposite is true!  What is short about a short sale is the payoff of the first mortgage compared to the amount actually owed.  In other words the seller needs to sell the home, but the market value is below the amount owed on it.  

    Well, why would the lender consider that?  When the seller stops making their payments and informs the lender that their choice is to foreclose and sell it or market value or accept the short sale and sell it for market value most lenders will seriously consider the short sale alternative. 

     The lender's serious considerations, however, do not proceed rapidly.  The lender is obliged to evaluate the alternatives very carefully because most often they are merely servicing the loan for the actual note holder. In addition a mortgage insurer may be liable for some or all of the payoff shortfall so they will need to participate in the consideration process.

     Short sale purchases provide patient, time-flexible buyers opportunities to purchase homes for low market, not below market, prices.  Buyers with inflexible externally-imposed time deadlines should consider buying bank-owned or normal sales.

     Buyers seeking any kind of purchase are always smart to engage the services of an experienced local real estate agent. 

(Deanna and Jim's GOLD Team has handled over 600 residential real estate transactions in Northern Virginia in the last 11 years. We have handle over 145 bank-owned sales and dozens of short sales. We love to "Knock Your Socks Off" with responsive personal service.)