What is a Short Sale – Understanding Short Sales
September 29, 2008
A short sale in basic terms is selling a home for less than what is owed on the home.
Other than the seller being ‘upside down’ and as a buyer needing to deal with the bank, most aspects of a short sale are similar to buying a home in which the seller has equity.
What is different in a short sale?
The biggest difference is the obvious, getting the lender to accept less than what is owed to them.
One point to remember is that just because a home is listed for sale as a short sale doesn’t mean the bank will accept less, they may decide to go to foreclosure even if the seller accepts your offer.
If you write an offer on a short sale, prepare to wait and wait and wait for an answer from the bank. Many times the home you made an offer on and received acceptance from the seller is still on the market as available. The seller may hope to receive another higher offer, and some banks can request all offers to be submitted to them and you could be bumped out of acceptance if a higher comes in, despite the initial acceptance from the seller.
Make sure the agent you hire has checked the important foreclosure proceeding dates. Nothing could be worse than waiting to receive acceptance from the bank only to see someone come in and buy that home at auction out from under you.
If you are thinking of buying a short sale, talk to a Realtor who has experience with short sales and a Realtor who is local and knows the neighborhood.
Tagged: short sale in dublin, short sale in pleasanton, short sale in tri valley, short sale tips, what is a short sale
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