Short Sales & Foreclosures
Okay let's talk about short sales. The simple definition is this: the seller owes more on the house than they can sell it for. Thus, they are short. The lien holders (bank or banks) have to agree to accept less than they are owed in order for the sale to be completed. This process can take weeks. There are efforts being made to speed this up and it's getting better. Agents are becoming better informed as to the process.
From a buyers standpoint the downside is that when you make an offer, you will not get an answer immediately and usually the house remains "on the market". That means that other buyers can still make offers and if their offers are better than yours they get the house and BTW they don't tell you if the other offers are better than yours. If you need a home at a specific time, short sales may not be the way to go.
On the upside, these homes can be very affordable and if you are patient and have the time they can be a great investment. If you made an offer at the end of June, you probably would have a yes or no in early to mid August and be able to close in mid September.
From a Sellers standpoint, short sales can be financially and emotionally draining. If you have had a financial setback, loss of job or cutback of work hours, health issues or divorce you may qualify for a short sale. Just owing more on your house than you can sell it for does not qualify you for a short sale. I have had specialized training to help you understand what your options are and how best to move forward.
Over 30% of our market is short sales, higher in some areas of town. Selling a home short is better for your credit rating than allowing it to go to foreclosure. With so many others in the same situation, short sales are a by-product of the times we live in, not a reflection of you or how you handle your finances.
I have completed the SFR training, which is the National Association of Realtors designation of Short Sale Foreclosure Resource and I am closing short sales on a regular basis. Ideally, I try to help my clients in a financially difficult position to avoid foreclosure by completing a short sale whenever practical. I have been down this road; I know where the bumps are and how to smooth them out. Please give me a call and let my training help you make the best decisions in your current situation.