What is a Short Sale? March 20, 2008
Posted by Dave in Real Estate Industry.trackback
A short sale means the owner owes more than the house can sell for in the current market or it is nearing foreclosure, and so the lender is agreeing to sell “short” of what is owed… these transactions take longer because of bank involvement… sometimes up to 6 months from the time the offer is made.
While the seller will agree to an offer, it’s really the lender holding the cards and determining if price and terms are acceptable.
So even if the short sale property is listed at, say, $250K that does not mean that’s what the bank will take for the home. Often, they counter at a higher price.
Also, while the buyer is waiting to hear from the lender, other properties, non-short-sale, are selling and buyers may regret missing an opportunity while waiting.
Basically short sales are a fit for pure investors or those with the patience of a saint.
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