I know a couplethat are upside down, with the property worth less than the outstanding mortgage amount. They need to sell to move onto a new job in another city. Left with little alternatives other than give the keys to the bank or ask the bank to accept a short sale, they chose the latter.
Once the bank found out the situation they gave conditional approval for the couple to list the home with me for an amount less than was owed. Since the listing price is lower than comperable homes in the immediate area there has been a steady flow of Buyers, all looking for a deal. The property is listed as a Short Sale Subject to Banks Final Approval.
The Sellers and I are waiting for the offer to come in over the fax that the bank will accept. The process of getting the banks approval on an offer and get the contract to closing can extend past the normal period a Buyer is accustom to. Rather than the typical 30 to 45 days from offer to closing we are looking at anywhere from 60 to 90 days to get the loan closes so the Buyer can move in.
Buyers look at short sales as a way to get a better deal on a home than during typical markets and they do get fantastic deals. The thing the Buyers need to understand is that they need to be flexible. Buyers that have to move by a set date like 30 days after giving their landlord notice will find it difficult to meet short time frames to get closed and move in. This is the trade off for getting a good price.
So, as a Buyer, if you have time and are flexible, a short sale may be the way to go. Make sure your Buyers agent knows all the details so they can help you get the perfect home at the best price that meets your time requirement. If its a short sale, then be patient.
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