WHAT IS A SHORT SALE? AND IS IT WORTH IT?
THE DEFINITION OF A SHORT SALE 101 - SELLER OWES MORE THAN THE HOUSE IS WORTH AND HIRES A REALTOR TO LIST THE HOUSE AND SOLICIT AN OFFER BASED ON THE CURRENT FAIR MARKET VALUE OF THE HOME. OFFER COMES IN AND SELLER PROVIDES FINANCIAL, OR MEDICAL DOCUMENTATION SHOWING HARDSHIP AND ASKS THE BANK IF THEY WILL TAKE "SHORT" OF WHAT IS OWED ON THE PROPERTY. IT IS UP TO THE BANK WHETHER OR NOT THEY WILL TAKE THE SHORT SALE. THEY SOMETIMES DO, HOWEVER, SOMETIMES THEY DON'T. THE 4 IMOST IMPORTANT CONSIDERATIONS FOR A BUYER IN PURCHASING A SHORT SALE ARE AS FOLLOWS: 1) TIME. MAKE SURE YOU HAVE ALOT OF IT - AND AREN'T IN A HURRY. GREAT FOR THE CASH BUYER. NOT SO GREAT FOR THE BUYER WHO IS DEPENDENT ON AN INTEREST RATE. THIS PROCESS IS NOT FOR THE FAINT OF HEART. FOR IT CAN TAKE ANYWHERE FROM 2 MONTHS TO 6 MONTHS TO GET A SHORT SALE THROUGH. IF YOU AREN'T IN A HURRY - THERE ARE SOME WONDERFUL OPPORTUNITIES. 2) FIND OUT HOW MANY NOTES ARE DUE ON THE PROPERTY. IF THE SELLER IS DEALING WITH ONE LENDER - THOSE SHORTS USUALLY GO THROUGH PRETTY SMOOTHLY. NOTICED I SAID SMOOTH - NOT FAST! IF THERE IS A 2ND LENDER, OR A PRIVATE INVESTOR - THEN IT CAN GET A LITTLE DICEY - FOR THE 2ND USUALLY WILL BE GIVEN MUCH LESS THAN WHAT IS OWED -AND MANY TIMES - THEY WILL REFUSE. THEY WILL DIG IN THEIR HEELS AND ALL THAT TIME HAS BEEN WASTED BY MR. BUYER WHILE OTHER GREAT PROPERTIES HAVE BEEN SOLD1; 3) KNOW WHO IS REPRESENTING MR. SELLER ON THE PROPERTY. THIS IS NOT REAL ESTATE 101 - THIS IS REAL ESTATE 1001. THE LISTING AGENT HAS TO BE A REAL ESTATE PITBULL. HAS TO BE CONSTANLY WORKING, BE ON TOP OF THIS FILE AND THE LENDER'S AND THEIR REPRESENTATIVES. SO MAKE SURE THAT AGENT KNOWS HOW TO GET THESE THINGS THROUGH. AND FINALLY; 4) BE WELL REPRESENTED ON YOUR SIDE. HAVE A GREAT AGENT REPRESENTING YOU WHO UNDERSTAND THIS PROCESS AND CAN CORRECTLY GUIDE YOU IN MAKING THE RIGHT CHOICE. FOR MANY TIMES THE RIGHT CHOICE ON BUYING A SHORT SALE ISN'T THE BEST CHOICE. I CAN BE REACHED ON TWITTER AT SEDONAHOME, FACEBOOK AT BARBARA HOOYMAN BAKER, EMAIL AT BARBARA@BARBARABAKER.COM, ON THE WEB AT WWW.BARBARABAKER.COM AND THE OLD FASHIONED WAY - 928-301-0669. HAPPY BUYING!