Short Sales
Short Sales are sales where the value of a property is less than the amount owed to the lender. A seller is normally already in default of their mortgage for a short sale to be considered by the lender.
A short sale occurs when a contract is tendered by a buyer, then accepted by the seller, contingent on the approval of the lender. A deficiency results for the seller, and the lender may attempt to collect the deficiency, depending on state law and what deal the seller has made with the lender. A Short Sale can also have significant tax, legal, and credit consequences for a seller.
If you are faced with foreclosure and are thinking of selling your property, call us for the true picture of your home's value, your local market conditions. Then get the advice of your attorney, CPA, and financial advisor.
For the buyer, Short Sales can take more time to complete than other types of sales, such as a long wait for lender approval. These may not be suited for you if you are on a short or fixed timeframe.
Get more information about Short Sales from the National Association of Realtors.
Be sure to request a copy of our Short Sale Handbook, containing Short Sale Scenarios, How to Do a Short Sale, and a Short Sale Checklist among other topics.
Interested in buying or selling a short sale? Contact us!
*****Short Sale Update****** 27 July 2009
The latest data shows short sales closing at about the same rate as a "normal" (non-foreclosure) property - about a 40-45% success rate. Therefore, making a short sale offer has a probability of closing as high as these "normal" sales and should definitely be considered when you're looking to purchase.