Since the real estate "bubble" burst in 2007, there has been an increasing number of REO's (foreclosures) an short sales. I have found that not everyone understands the meaning of the term short sale or the complications that come with a short sale transacton.
A short sale is a sale when all lein holders agree to take less for the property than what is owed on it.
Many consumers seek out short sales because they want to get a good deal on a house.
The purchase has to be approved by all lien holders which includes any mortgage holders, HOA or contractors who have done work on the house and have not been paid. With so many people involved in a short sale, the process usually takes much longer than it does to buy a house that is not distressed.
Consumers should also be aware that a short sale property may need a lot of repairs, therefore they may need to set aside money for the necessary repairs.
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