Please Explain a short sale

Are the worth a look or not?

Re: Please Explain a short sale

I did this as a FM, but I guess many of you have questions. about short sales. You can always go to business helping families page and ask me a question. I don't bit and I don't push. I sell from the heart, and I get rewarded. I love to teach others how, because I believe we are all capable and knowledge is king.

The basic short sale;

The homeowner has no equity in his home and usually owes more then his mortgage.
He is selling it "short"
The lender is taking a "short" payment on the amount owed.
Which means the lender controls the deal.
The lender is making the decision.
The new program "HAFA" standardizes all the forms for the lenders and makes its easier. I haven't seen it happen yet. Not all lenders are partaking in this program.
Short sales do happen, but they are far from short in the amount of time they take.
They can take many months. Discuss this with your lawyer or ask Wendi her opinion on the length of time.
Also, if their are 2 or more mortgages on the property, many times it just does not work.
Remember you are tying up your down payment for months without a commitment.
It can be a good deal, but how long can you wait.
Make sure the Realtor who is handling the deal knows what they are doing. If you have any questions, I am here to help. I have over 5 years experience with loan mods and short sales, they are not fun at all, but if you have patience you possibly can get a good deal.

Good Luck
Arthur

Re: Please Explain a short sale

Just wanted to say that the home I purchased last May was a Short Sale. It did take a little longer but not really too much longer compared to friends who have bought homes. There were two mortgages on it so there was an issue towards the end as far as which bank would get how much $$ but we were able to work it out. It may require a bit more patience but in the end, we got a great house for a great deal. It was worth it. Feel free to FM me if you have any questions.

Good Luck!!!!

Re: Please Explain a short sale

If you have the time and patience, a short sale is definitely something to consider. We are in the process of purchasing one now, and so far so good. A few things to keep in mind:

You'll be purchasing the house as is. It may need a lot of work, it may need minimum work. But that's why the inspection is so important.

There's not much negotiating power. Usually the asking price is in the area you need to stay in. Our offer was accepted at 6% below the asking, but the house has been on the market for more than a year.

You may run into a few more roadblocks than a regular sale. But if you're not in a hurry to move out, it's definitely worth the savings.

Good luck!

Re: Please Explain a short sale

I will be closing Monday on a short sale

Re: Please Explain a short sale

I need to add- there is not always a savings with a short sale

the banks require something called a BPO (broker price opinion)

it's like an appraisal done by experinced brokers and agents - the only difference is you do not go inside

the short sale is sold for what the bank feel is the house is worth- based on recent sales and comps- just like a regular sale