Most people do not understand what a “short sale” is and are afraid to ask. So, here it is… Basically a short-sale occurs when the seller’s monetary obligations are more that what the seller is going to realize from the sale of their home and the seller is unable to pay the difference.
A short-sale is more widespread today for several reasons. Commonly what is happening is that an owner for personal reasons, i.e. divorce or loss of income, can no longer make their monthly mortgage payments. Or maybe the mortgage payments have adjusted to a higher amount that what the owner can afford. Coupled with the fact that the property has declined in a value, an owner may be faced with a foreclosure or short-sale situation.
The first rule of a short sale is for everyone involved to have lots of patience and be willing to wait to get answers. This is very important as it can take four to eight weeks in some cases to get an answer on the initial offer submitted to the lending institution.
There are lots of things that buyers and sellers should be aware of when buying or selling a short-sale property. As an agent whose dealt with these transactions, I could go on and on with lists of do’s and don’t, but every situation is different. The most important thing you can do is hire a professional team consisting of a realtor, attorney, home inspector and, if necessary, a short sale expert. Contact Kristy B. 781~479~4066