The Short Sale - It's funny that this term and process has been around for quite some time, but not until recently has it really become "household" lingo. I'm asked almost daily about how to go about this process by folks that are facing foreclosure.
So for those interested, the process of a "short sale" is bascially this: You list your home, get an exceptable offer, offer is presented to the bank which holds the current mortgage(s). If the bank is willing to accept a lower amount than what is owed, this is considered a "short sale". In other words, they are being paid "short" of what is owed by you in order to transfer ownership to the new owner before the foreclosure process starts. 2nd liens are a bit more tricky, especially if you have different banks involved.
Banks in this country have faced an extremely high rate of foreclosures in the last 18 months. They are not necessarily in the business of keeping real estate inventory unless someone else is paying a mortgage on the property. Depending on the situation, most would rather take a little less than you owe rather than increasing their property inventory via foreclosure.
Now every bank is different, so the process may vary slightly. Each has there own set of paperwork or Addendums. From what I've experienced, banks can take from a few days up to 4 weeks before they respond to an offer. Most want Earnest money. Most will pay some type of closing costs. Most won't make ANY repairs. None of them have any emotional attachment to the property. Needless to say, buyers who are making an offer on property subject to "short sale" need to be patient. Furthermore, make sure your Realtor is familiar with the situation and the process so there's no "surprises" later.
For those who want more information about the process, I'm here to help. Thanks and good luck!
Comments(0)