Short Sale explained!!! To the best of my knowledge!!!

By
Real Estate Agent with THE CHAVEZGROUP AT COLDWELL BANKER PREVIEWS INTERNATIONAL

When a homes value is less that the amount owed on a mortgage, and the home owner is late making

payments on the mortgage, the bank will begin a forclosure process. If the home owner wishes to save

his credit rating and avoid the forclosure, a real estate agent is hired to market the home for sale. Since

the homes market value is less than the amount due on the mortgage, the agent begins a short sale

process. Most often we need to stop the forclosure process so we price the home below market value to

attract attention which in turn leads to offers on the property. Once an offer is accepted by the home

owner the bank reviews the offer and either accepts the offer or sends a new approved price which is

higher. In the event the approved price is higher the agent relists the home at the new approved price

and sells the home at this price. Sometimes the approved price set by the bank is higher than the real

market value this sometimes causes the home to not sell and the bank ends up forclosing on the home.

This short sale process takes anywhere from 2-6 months. In other words short sales are very uncertain

and can waste a lot of your time.   In my experience you are better off looking for a home that is a

regular sale, or a bank owned sale. Unless this home is absolutely the one you really love then I would

say you should spend the time in the short sale so you can aquire this home.  

Comments (0)

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?