Greenway Properties

Short Sales

What is a short sale?

A “Short Sale” is a pre-foreclosure sale in which the owner can no longer make their monthly mortgage payment and needs to sell or can still make their payments but needs to sell for other reasons and currently owes more than their home is worth. The term “short” in short sale means that the seller is attempting to sell the home short of what they owe.

How long does a “short” sale take?

Short in no way refers to the length of time needed to accomplish this type of sale.

Short sales actually take on average 4-6 months to complete. I have had them go as quickly as 2 months and take as long as 18 months.

How does a short sale transaction differ from a standard transaction?

This is an enormous topic that we could dedicate an entire website to but will explain the most pertinent differences to you here. A short sale takes longer, as stated 4-6 months. Short sales are almost always “as is” sales meaning that the seller nor the bank is going to make any repairs to the property. We can still ask but they are unlikely to do it. The price and terms that you put in the original contract are not necessarily the price and terms that the bank will agree to. You and the seller come to agreement on the terms you would both like and then the seller’s agent submits those terms to the bank. The bank goes through a 4-6 month review process looking at the seller’s financial situation, your offer, the market conditions and the terms given to them by their investors dictating the situation under which they can grant a short sale and they make a final determination. They issue a settlement letter to the seller that lets the seller know the terms under which they will allow them to sell short. We put language in all of our short sale agreements that then requires the seller to give you the right to review those terms and accept them or cancel the agreement. Another way in which short sales differ from standard transactions is that there is no guarantee that they sale will go through. Of course there is never a guarantee that the sale will go through in any home purchase, things can come up. However, in a short sale, there are many extenuating circumstances and decision makers that come into play to make a much larger likelihood of the home purchase being unsuccessful than in a standard transaction. That is why it is important that you work with an experienced short sale agent. The bulk of the transactions that I have helped my clients with over the last several years have been short sale and REO transactions. I have the skills and experience to greatly increase the likelihood that your short sale transaction will be successful.

Why would I want to go through that process to purchase a short sale?

Like REO’s, short sales tend to sell for below market rate so if you can hang in there, wait it out and accept the uncertainties involved you could get more home for your money than in a standard sale. Also, so many of the homes for sale in todays market are short sales that to find the home that fits your lifestyle, meets your families needs and is in the neighborhood you want you may have to consider short sales.

For a free list of short sales click below and be sure to put the words “short sale list” in the comments section.

Short Sale List

If you are a seller considering a short sale for your home please click below to visit our Sell A Home page or you can call us at 916-317-3050

Sell A Home

to get a free estimate of what your home is worth click below and be sure to check the “sell a home” box, fill in the information and put the term “short sale” in the comments box.

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