The Dreaded Short Sale

Ok, here at Laurel Real Estate we have discussed the first two types of sales.  First, was the normal sale between  a buyer and a seller.  Second, was the foreclosure sale between a buyer and a bank.  Now we come to the short sale. A short sale occurs when the seller needs to sell his home, but can not sell it for what he owes.  In the ideal scenorio the bank allows the seller to sell the home for less than what he owes on his mortgage.  Any offer on the property has to be approved by the owner and the bank that holds the note.  After a seller has accepted the offer he sends it to the bank.  The bank usually takes about two months to respond.  The time delay is one of the negative aspects of a short sale.  The other negative to the short sale is the counter offer from the bank.  In 99 percent of short sales the bank has no idea how low the realtor and seller have priced the property.  A buyer may offer full price on a home at $215K and the bank two months later counters the buyer at $350K.   Short sales, in most cases should be avoided.  There are some rare exceptions to this. Ask your realtor what they may be.

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