What is a Short Sale?

By
Real Estate Broker/Owner with Fierce Realty Corp RM424134

A short sale is when the seller sells his/her home with the mortgage company agreeing to accept less money to payoff the mortgage. This is done when the seller is experiencing economic hardship and the value of their home is worth less than their current mortgage. Most home buyer's,  and surprisingly real estate agents, do not understand the concept and process of buying/selling a home as a short sale. Some tips 

1. A short sale does not mean the sale will be quick, it can actually take several months for third party approval and even longer if there is a second lien holder.

2. You cannot receive seller' s assist for settlement cost. The seller cannot pay his mortgage and is in need of a bailout. He does not, nor the bank,  ghave funds to give you for settlement cost.

3. The seller cannot make any repairs, home is sold "as is".

4. A potential buyer may need to pay judgements and fees.

5. The potential buyer may need to turn on the utilities in their name before taking ownership.

6. Is buying a short sale worth it? Yes, it can work out for the potential buyer as far as purchasing prime real estate for half or less in cost.

Deborah Soence

Weichert Realtor

dspence@weichert.com

 

 

Comments (12)

Susie Kay
Ultra Real Estate Dallas Fort Worth - Plano, TX
North Dallas Specialist

Thank you for posting, Deborah. To me short sale is equal to long sale :)

Dec 04, 2016 05:06 PM
Deborah Ann Spence

Yes, it's brutal

Dec 05, 2016 02:30 PM
Sybil Campbell
Fernandina Beach, FL
Referral Agent Amelia Island Florida

Hi Deborah Spence, welcome to Active Rain and congrats on your first blog post. I think you will love being here, where you can interact with other professionals and learn about various real estate markets. This is a great blog post explaining the many sides to a short sale.

Dec 04, 2016 05:07 PM
Deborah Ann Spence

Thanks for the welcome 

Dec 05, 2016 01:00 PM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Deborah welcome to ActiveRain and congratulations on posting your first blog on this site.

Dec 04, 2016 05:21 PM
Deborah Ann Spence

Thanks

Dec 05, 2016 01:01 PM
Mary Jo Quay
EXP Realty - Minneapolis, MN
I Move You Home

The laws in each state are different concerning preforeclosure and short sales. The bank can agree to seller contribution towards closing costs, all judgements, fees, and the water bill should be negotiated to be absorbed by the bank instead of the buyer.  Using a good negotiator is key to the success of a short sale.

Dec 04, 2016 05:36 PM
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

Thanks for the good explanation of the Deborah.

Welcome to Active Rain, looking forward to reading many more of your posts, let me know if there is anything that I can do to help as you get started here.
All the best of success to you.
Bob

Dec 04, 2016 11:42 PM
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Good morning, Deborah Spence I hope we never need to go through another spell of upside down housing.... short sales are a specialty and those who are well versed with that concept were very successful....

Dec 05, 2016 02:10 AM
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

and welcome to ActiveRain...it's a great place to learn, share, market and network....and I hope you enjoy all of it...

Dec 05, 2016 02:11 AM
Richard Weeks
Dallas, TX
REALTOR®, Broker

Welcome to Active Rain.  I hope you enjoy your time here.

Dec 05, 2016 05:09 AM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

I am glad to say that short sales are dwindling in my area Deborah Spence.  I want to thank you for joining our ActiveRain community. Remember the more you participate the more you'll get out of the rain!

Dec 05, 2016 01:21 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Welcome to active rain. I am looking forward to reading your posts.

Dec 05, 2016 01:24 PM
Susan Jemison
Windwalker William Raveis - Nantucket, MA
Full-service agent serving Nantucket and beyond.

This was a great post!  As one getting acclimated to the world of Real Estate, I enjoy the educational tidbits and the sharing environment Activerain provides!  Thanks for the inspiration Deborah Spence!

Dec 06, 2016 04:07 AM
Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Deborah, selling short sales is a hard way to make a living!  And  And welcome to ActiveRain.  We could have you addicted in no time!

Dec 06, 2016 10:16 AM

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