Monday, September 13, 2010

What is a "Short Sale"

A "Short Sale" is when the sellers lender is willing to accept "short" of what is owed to avoid foreclosing on the property. They are a great opportunity for people who are having difficulties (or will be having difficulties) making their mortgage payment due to a hardship. They are also a great opportunity for homebuyers or investors who want to purchase property (usually) below market value. Sound like a great deal? It is, but usually doesn't come without some additional difficulties. First of all, some short sales are not "pre-approved" by the lender, so the asking price is not set by the lender (who is the one making the decision) but rather by the seller and/or their agent. That means that even a "full price offer" could be denied, wasting precious time for the seller and possibly lost opportunity for the buyer. The approval process can be a lengthy one, depending on the bank who owns it, so don't expect an overnight response... or even close to it.

However, despite the difficulties, many times they prove to be a win-win for everyone involved... and, like any other real estate transaction, your Realtor(R) can advise you on whether a Short Sale may be a great opportunity for you to explore.

Cassie Purcell, SFR
Keller Williams Realty
MS Gulf Coast