WHAT IS A SHORT SALE?.............

Over the past several years Buyers have purchased homes to live in them for many years, Then something happened - maybe good - maybe bad, but regardless they found themselves needing or wanting to sell. Selling a home in the past has not usually presented a problem. But, in this market it can be. Becaused of easy financing, rampant speculation, flipping and sometimes fraud home values skyrocketed everywhere. When that came to an end values of homes fell dramatically. Sellers found themselves in a position of not making enough money should they sell to pay the existing mortgage and the costs to sell. What happens next? often "A Short Sale"

A Short Sale is when a lender agrees to accept less money for a home than is owed.  The lender is "short funds".  Why would a lender accept a short sale?  Because a lender will usually lose less money than if they foreclose and sell it as banked owned. A Realtor can be a real asset to a Seller who may benefit from a short sale.

With permission from a Seller a Realtor can negotiate with the lender on the Seller's behalf while they continue to live in the property.  Seller's feel better because a "For Sale" sign goes in their yard and is shown by appointment by area Realtors just like any other home. 

*SHOULD A SALE RESULT IN LESS THAN NEEDED TO PAY OFF THE hOMEOWNER'S MORTGAGE THE LENDER UNDER RECENT LEGISLATION TO FORGIVE THE SELLER'S REMAINING DEBT.  hOWEVER IT WILL BE CONSIDERED UNCOME BY THE IRS.

BUYERS

If you are interested in purchasing a Short Sale property here are the things you need to know.  Unlike a Foreclosure the bank does not own the property. However, the bank must approve any offers on the property, because it is the bank, not the  Seller who is taking a loss on the property.  A potential puchaser should expect to purchase a short Sale property "as-is" but it is acceptable to stipulate should a home inspection revealconsiderable problems a purchaser may choose to withdraw their offer.  Be prepared to wait if you make an offer on a short sale property. Banks are notorious for taking as long as several months to respond to a short sale offer. Purchasers are required to make an offer in writing, accompanied by an earnest money check just as they would in a routine real estate transaction. Lenders will rarely consider an offer that is continqent on the sale of a home.  If you are considering purchasing a short sale property, your first priority should be to sell your existing home first.