Short Sales

 

If you are a buyer that is interested in purchasing a short sale property there are some things you should be aware of. I want you to have a good understanding of what a short sale really means. A short sale is a property that is sold for less than the amount of the mortgage against the property not necessarily for less than market value. Now with that being said this means that the lender that holds the deed on the property must approve the short sale before it can be sold. Typically once you send an offer to the bank the approval process takes anywhere from 2-4 months before the bank will come back with a decision.

 

Depending on your timeline you have in mind for purchasing and moving in to your home this type of property may or may not work for you. Most people are under the impression that they can purchase a short sale property well below market value. What people do not understand is that the bank do not want to lose anymore money then they have to on their investment, so the banks will typically list the short sale property at or just below market value, there are a few exceptions out there.  Now the thing you need to think about is if you write an offer on a property that is a short sale and you wait 4 months for a bank decision that comes back denied you just invested all that time just so you can start over again.

 

The thing is, do you remember above where I talked about market value, there are several homes out there that are being sold by home owners that are at or just below market value as well. So the question that you need to ask yourself is "Do I want to waste my time on buying a short sale or do I want to find a home that is for sale by the homeowner that I can close and move in to in 30 day".

In closing, I am not trying to persuade you into not buying a short sale property my goal simply to educate you so that you can make a informed decision whether this type of property will work for you and your family. So whatever decision you make I am here to help you reach your real estate goals. All you have to do now is contact me so we can start the process.