There is really no "short answer" to how a home gets to be a short sale...there are soooo many reasons...one that is most disturbing is that there are many agents who do not ask when they take a listing to do a "Net Proceeds" sheet. - Do you know what all your sellers owe on their homes ?
- Do all your sellers understand that "owe" means not just the first mortgage balance...but the home equity loan, the lien for the car?
Owing means EVERYTHNG for which that property is collateral. Adding any past taxes...property or other taxes from a past business....or vendors from a past or present business that may have put a lien on the property....all those things added together must be paid to get clear title and a new buyer owning the property free and clear. In Wisconsin, we also have a tax when you sell a home...and the seller pays for the title as well as the real estate commission....with all those PLUSES is there still a positive number left from the intended list price ?
MOST IMPORTANT - How did you or the agent arrive at the list price of this property ? Over and over and over we have heard, seen and taken listings where the seller and agent agreed on a price based upon clearing the sellers debts and "a little extra to start over". YICKS !!!! If that is how you arrived at the price...if no other similar home in your area has sold for close to what you are asking...yours will not be the first AND since appraisers use those same sold numbers to determine whether or not a buyer gets a loan....now you are looking for a cash buyer who is not a smart enough real estate investor to get an appraisal....don't know the odds...but safe to say....pretty slim.
Call a short sale specialist in your area if your home has sat on the market for a long time with no offers. If you don't know a realtor who specializes in short sales, call us, we will find you the very best qualified agent in the area who knows your market and will help you avoid foreclosure. Be smart...move quickly, the foreclosure clock waits for no one.
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