Thursday, September 15, 2011

Short Sale

If you have been shopping for a home or investment property lately as you browse through the real estate listings you will notice some homes classified as foreclosures and some as a short sale. What is a short sale?

A short sale is when the home is offered for less than what is owed on it from the mortgage holder. To sell your property as a short sale you must have approval of the lender. One of the benefits of a short sale is the owner will not have a foreclosure on his record. Generally the sale price is much lower than the asking price. This does benefit the buyer. The homeowner could still be responsible for the balance of the money owed to the lender and sometimes they are pursued in court for the difference. Many lenders will not approve a short sale. As a buyer you must have a lot of patients and time to pursue the short sale as the lender is always trying to get the highest price for the property. Some short sales take up to a year. I have seen some close in a month but this is very unusual. Your real estate agent can be very helpful in negotiating a short sale. So if you have the patience and the cash you could benefit greatly as a buyer in the short sale.

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