Explanation of Short Sale:

 

A “Short Sale Property” is a property where the existing owner owes more than the property is worth (Usually a large difference).

 

Example:  A Property with a value of $125,000 with a single mortgage or multiple mortgages total $275,000 the existing owner needs to short the bank $150,000 on payoff. Many times the banks will do that and the owner is not responsible to make up the difference.

 

“GENERALLY” - these properties sales have never been pre-approved by the bank until there is an offer... Generally it will take between 2 months and 8 months for any kind of possible approval to be provided.

 

In the mean time, many buyers become frustrated and cancel the purchase.  If not canceled the banks terms are then presented to the buyer to see if they are acceptable.  Keep in mind as a buyer, those properties may also be foreclosed on before the short sale is approved then the buyer's have totally wasted their time. That property as a foreclosure will not usually be available for sale as a foreclosure for 1 - 2 months after that.

 

As a seller there are definite advantages to selling as a

Short Sale vs. Forclosure.

FOR FORCLOSURE vs SHORT SALE DETAILS EMAIL rbd@briandonohue.com

 

 

For additional information on Short Sales (as a buyer or seller) Call Brian with over 15 years of "Short Sale" Experience. 

602-548-0333