Your Questions, Answered: “What is a Short Sale?”

house short saleWhat a question! And the perfect one for a three part series due to the popular and complex nature of this topic. Short sales seem to be popping up everywhere these days, and its so important for a buyer to be knowledgeable on the subject if they’re at all considering jumping into the typically long and grueling process of purchasing a short sale home. You may know by now the general concept of a short sale, but Red Robin Group is here to fill you in on the rest. Make sure to check back next month for even more info on short sales, and give us a call @ 404-254-5206  in the mean time.

What is a Short Sale?

I’m not sure I’ve come across a buyer yet that knows exactly what a short sale is. Most think it’s a very quick sale. So, I decided it was imperative that we discuss it. In fact, short sales happen when a bank agrees to accept less than the amount of the mortgage the seller owes to the bank. In most situations the seller has to prove a financial hardship. There are many moving parts to a short sale, and you should consider your individual situation when deciding to purchase a short sale. Short sales can be a great deal if you’re ready for it. I typically do not recommend a short sale for people needing to move quickly as a majority of them take anywhere from 3-6 months to close.

The fastest way to purchase a short sale is when it has already been approved. Most banks will not approve a short sale without an offer from a buyer. If you see a listing that says it’s approved it means the bank has accepted a certain price (typically around or at the list price).

Here are my top things to know about short sales:

1. Most sales are “as-is” condition.
2. Your sale is through the Seller not the bank, but is contingent on bank approval.
3. Most take 3-6 months, even though some take longer, and approved sales could be ready to close in 30-60 days.
4. Even though the Seller accepts an offer, the bank is the party that really controls the end sales price.
5. The listed price has typically not been accepted by the bank, except in approved short sales.
6. Find an experienced agent when buying or selling a short sale.

Since this topic is so popular and complex, we’ll be continuing this discussion next month for a 3-part series on short sales. Give me a call or email me to get more details and learn how to protect yourself when purchasing a short sale. We can discuss what to look for and if it is the right decision for you.

posted: Sep 8, 2011 | No Responses

Posted by:  Wakamo & Associates

Melissa Wakamo and her dynamic team of agents and support staff provide buyer and seller clients with exceptional service and proven results. Since the start of her real estate career in 2004, Melissa has proven to be a true advocate for her clients and has consistently performed in the top 1% of agents

“When I started my real estate career, I wanted to work in my local community and get to know my neighbors. Now, I realize how important that local expertise is to our clients. At Red Robin REALTORS®, all of our agents are specialists in working with buyers and sellers in Atlanta’s intown neighborhoods.”

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