What is a short sale?

This is something I’m asked often.  A short sale is when a property is offered for sale and the amount the seller owes to their lender is more than what they are sometimes asking for the home.  When property values decrease and the owner needs to move, they end up side down on the mortgage so they need to do a short sale. 

The seller contacts their lender and makes arrangements to sell their home for less than they owe.  A buyer can buy a short sale home the same as any other.  However, there is an additional step where the seller’s lender must approve the contract.  Each lender is different in the time that they take for this.  Otherwise, the sale goes as any other.

For additional information, feel free to contact us.

There are several reasons to take advantage of buying a home in this market.  Interest rates have remained low so your money continues to buy more.  The inventory is still quite high, giving you a lot of choices of homes.  The local lenders are still giving out mortgages and the Federal loans work well for some buyers.  There is still 100% financing for qualified buyers.  Most importantly, keep your credit score high as lenders are sensitive to this.

Feel free to contact us with any questions!