What is a Short Sale?

A short sale is a form of "pre-foreclosure". A foreclosure is when a homeowner defaults on paying their mortgage and the bank takes control of the home. A short sale occurs when the bank allows the home to be sold for less than is owed on the mortgage. Due to the declining home prices,short sales are a very common occurence

A large number of inexpensive homes on the market are "short sales".

Does that mean you'll get a "deal"?

Not necessarily. Banks require that homes be priced according to the market,to assure they are receiving as much of the loan as possible. They will even send their own appraiser to guarantee the home is being offered at fair market value.

Some agents price a short sale home ridiculously low, just to test the waters because they don't know exactly what the bank will take. A short sale split in Oceanside that was on the market for $395,000 eventually went in the high fours.

Since a short sale home is usually neglected and in a state of disrepair,the price usually reflects that status. A buyer can find homes in the same condition,that are in the foreclosure process for the same price.

Making an offer on a short sale home is a bit different than choosing one that is still owned by the seller. The bank requires the usual paperwork in writing,and also might request a credit report. This information is faxed directly to the bank. The homeowner is not involved in the process at all. No offer is presented to the homeowner,so instead of receiving an answer anywhere from a few minutes to a day,the buyer might not get a response to the offer for weeks. The offer must pass through many different hands as required by the bank.

There are too many short sales to list here! Also there are more in some towns than in others. If you are looking for an inexpensive home,that needs a little tender,loving,care,give me a call anytime at 1-866-450-MATT(6288)