Short Sales and what it means to a buyer

First things first  There is much more to the definition of Short Sale but this gives a basic idea.

Definition:

A short sale is an “arrangement” between the current owner of a home and the bank that lent them the money to buy their home to accept an offer for less than the total amount owed to pay off the home. The “deficiency” is the difference between the amount owed and what the bank collects at the short sale.

I believe that a very important part for the buyer is in the end there are no other leins placed on this home by anyone including a lender(other than the buyer's lender). That is where the title company and title insurance come into play. We will discuss that at a later time.

Another critical peice of information is That while the seller accepts the offer all lenders need to accept the  terms of the sale and establish a written agreement with the seller. There may be multiple loans on the home

While it is frequently called a short sale there is nothing short about the process. It could take 60 to 120 days to complete the transaction. So if you are in a  hurry to move into a home this is probably not the best route for you

.

The home may be in need of repairs and I encourage you to have a qualified home inspector preform a home inspection and also a radon test. Please be aware that even though you have hired a home inspector to preform the above tests the lender or home owner may choose not to make the repairs and either of you may void the contract.

The idea of purchasing a home for a lower price than is owed on it is attractive (at least in the begining) but as weeks go into months it can become less attractive. You may have time and money invested only to walk away and start the process all over again.

I am not saying to not attempt to purchase a home that is a short sale I am saying be aware of  all that is involved. 

Feel free to contact your attorney for  clarification of the legal perspective of short sales

I hope this is of benefit to you and if you are looking to purchase or sell a home feel free to contact me at

david@davidangione .com

David Angione

REALTOR

DeHoff REALTORS