Short Sales Explained in short

By
Real Estate Agent with Key Realty Group Inc. 200512291

Most people assume that a short sale means a bank is in trouble and needs to sell fast. The fact of the matter is the banks have very deep pockets but are are willing to cut their losses in some situations. A common way for them to do this is actually forgiving a portion of the loan to sell a property at it's current market value if indeed the value is less than what is owed. In short the bank is willing to sell the home for less than what is owed. This is a not an easy task. Banks do not like to loose money. A short sale can be a great deal for a buyer if the property needs repair and the new buyer is able to bring the value up after doing the work. There is a misconception that the banks need to sell these homes quick. Nothing is further from the truth. The fact is the bank will make an escrow on a short sale take at least twice as long as normal. They will also need proof of value as well as the buyers new inability to pay before taking the loss . All this is very time consuming. If the property is worth more they will often hold on to it . I have secured for my buyers who have the time some of the best Real Estate Buys in lane county this year using short sales, but it's not an easy way to purchase a home. If you are willing to wait it out and write offers with a 50/50 shot of closing it can be worth the effort.

Comments (2)

Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F
Thanks for a very concise explanation.  The general public is very uneducated on this issue.  Are you really getting 50% approval on your short sales?  We are lucky to get 25% approved.
Mar 21, 2008 04:23 AM
Josué E. Silva
Tierra Antigua Realty - Tucson, AZ
interesting information. different than what i expected but close enough. thanks for posting.
Mar 21, 2008 04:29 AM