Please allow me to make something abundantly clear……THERE IS NOTHING SHORT ABOUT A SHORT SALE!!!! The term short sale has nothing to do with time. A short sale is a property whose market value is lower than what is owed on it. The seller is asking their lender(s) to accept a payoff which is less than what is owed.
There are no guarantees with short sales. The lender(s) may or may not agree to selling the house at a lower price. Their loss is usually significant and the transaction takes a LONG time.
Short sales can be a good deal for a buyer, but they have to be incredibly patient. Many listing agents think they can successfully negotiate a short sale, but unless they are experienced, they can cause further delays and add to an already frustrating situation.
I’ve had a client under contract on a short sale for 6 months now and there’s no end in sight. We’ve had excuses after excuses after excuses, from the listing agent. Throughout the entire transaction, she’s broken both arms, patting herself on the back and tooting her own horn. At the end of the day though, we still have no approval. My client really wants the house though. How bad? He’s been living in a hotel for 3 months.
So, my advice to you, think long and hard about attempting to purchase a short sale.
Lane Tuetken
LT-RealEstate.com
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Great information!