Short Sales are NOT short
Many people do not know what a short sale is. Most think it is a way to get out of a property quickly. It is not that at all. According to wikipedia, in a short sale, the bank or mortgage lender agrees to discount a loan balance because of an economic or financial hardship on the part of the borrower. The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender. Neither side is "doing the other a favor;" a short sale is simply the most economical solution to a problem. Banks will incur a smaller financial loss than would result from foreclosure or continued non-payment.
I am interested on any comments or input you have on your experience with short sales!!
Short sales may take from 45 days to 5 months!! The buyer may get very frustrated and impatient. The seller is anxious to get approval because they do not want a foreclosure on their record. Many times, when a property is in the short sale process, the bank will cancel the "sale/auction" of the home if they believe the Buyer will purchase the home. Short sales can be frustrating for the Realtor involved because there is more paperwork and followup to the banks. Hang in there...whatever your position may be!
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