How to Buy a House – What the Heck is a Short Sale?

You see a lot of them available, and they stay on the market for what seems like forever, so why are 

they called Short Sales I get this question a lot, and I thought you might want some information so 

that you as a potential short sale buyer know what to expect.

 

Short Sale sellers are those that have had a financial or personal setback, and are no longer able to 

afford their mortgage payment. In addition, the balance of their current mortgage is more than the 

current market value of their home. In order to avoid foreclosure, these sellers formally ask their lender to approve the sale of their house short of what is actually owed. The process of getting a short sale approved is both complicated and time consuming, but if the short sale is successful it often results in a buyer getting a good deal. 

 

 

 Lengthy Waiting Periods –The short sale process from the offer to the bank approval often takes 

45 days to 6 months! This requires planning ahead, because if you were to make and offer on a 

short sale today, you may not receive an answer from the lender for several months. At the end 

of that waiting period, there is no guarantee your offer will be accepted. In response to this 

challenge, my team has put together a successful short sale strategy for our buyers that can help 

greatly in overcoming this issue.

 

 Unprofessionalism – If the short sale listing agent for a house that you want to buy doesn’t know 

what they are doing, you could be out of luck. That’s why it is important to work with a buyer’s 

agent that can help direct you to the best short sale opportunities out there. Working with 

professionals can make the difference between waiting around for nothing, and getting to buy 

the house of your dreams.

 

 Uncooperative Sellers – Short Sale sellers have a huge impact on the overall success of the short 

sale. They are responsible for regularly providing detailed financial information to their agent 

and lender. A short sale with a real estate professional that knows what they are doing can help 

you avoid most of the pitfalls associated with a seller being uncooperative.

 

Despite the challenges I have described above, I have had great success over the past

couple of years in closing short sales! If you would like to get more information about Short Sales, or buying a 

home in general, please feel to contact me any time.