Of the 352 single family homes available for sale right now in south county (Morgan Hill, San Martin, & Gilroy, 111 are short sales and 39 are bank owned foreclosures. making short sales a significant part of our market, most likely for the foreseable future and then some!
Even though Short Sales and Bank Foreclosures are very different from each other in most respects, both types of sale tend to be very well priced, especially the Short Sales, making them quite attractive to buyers who are not in too much of a hurry. By contrast, probably two thirds of the regular listings on the market tend to be significantly overpriced, and will sit there unsold until their prices are reduced significantly down to true market levels.
Short Sales can be a good practical solution for distressed homesellers who owe more than their home is worth, but who don't qualify for a satisfactory loan modification, often because they earn either too little, or too much to meet the bank's criteria. Given the right help with your Short Sale you can often get the entire loan(s) waived, save or improve your credit, and significantly reduce your monthly housing expenses by renting rather than paying a huge mortgage and property taxes.
Short Sales are complex transactions with many potential challenges, and are best trusted to a Short Sale Specialist Realtor with a proven track record. In our current environment where everybody claims to have short sale experience, sellers would be well advised to get solid evidence [actual number of successful short sales!] of any listing agent's recent track record on short sales before committing to them. Sellers should also seek well qualified legal and tax advice before committing to a short sale.
Similarly, buyers should take care before putting all their eggs into one short sale basket. Short Sales are NOT all made equal ! Far from it ! Some can be completed in 4 -8 weeks whereas others are likely to take as long as 9-12 months ! An experience Short Sale Buyer's agent can analyse each particular situation and make a reasonable estimate of timeframes.
best regards
Dominic Godfrey, GodfreyBranco.com Realtors, South County Short Sale Specialists www.mghShortSaleBenefits.com
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