Who is a canadate to sell their home in a short sale? Most home owners that are in a financial hardship and behind on payments are prime candidates.
I will get the bank to take a loss on the property (which they will be happy to do), which allows the homeowner to sell it quickly.
Short sales are a way of life for some Realtors now that the market is down a bit. There are more and more foreclosures in Western Wisconsin, and across the country, and the banks are dumping them for a quick sale. Even though these homes can be a good buy, short sales can be even a better buy for a lot of buyers. Let me tell you why.
Most banks know that if a home owner is behind, it may take close to a year before they get it back and sell it as a REO (Real Estate Owned Property).
The two things you need to know are:
1) The bank doesn't want to own the home, so they would rather take a loss today, than get the property at (Clerk Sale, Sheriff, Auction) and take a bigger loss later. This can be a great advantage for a potential buyer who wants to get a great deal! A lot of times the price of a short sale home is far less then what it would be when the bank sells it for as a foreclosed home and in much better condition.
2) I do a lot of these sales, and unlike others, I will help the home owners to save their credit, get the bank off their back, and help them to get into a new home with easier payments. It is very easy to do. I do most all the work, and the bank pays me, NOT the homeowner!
Typically, a short sale will take 90 - 120 days to close and the home owner will walk away without paying a dime. Of course a short sale will bruise their credit, but if they're in that predicament already, their credit will be much higher then if they were to foreclose on the home. Plus there's no worry whether or not the bank will come after the home owner in a civil suit for the difference. All the terms are negotiated upfront with the lender, once they've received the purchase agreement, and the debt is generally wiped away. With a foreclosure, all liens are extinguished and the home owner will never know when the attorneys will come knocking on their doors.
I hope this helps buyers and sellers understand what the benefits of buying/selling a home as a short sale rather then letting the bank take over.