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What's a "short sale"? Is this a foreclosure term? Sorry if this question is dumb.

I'm leaving my rental and am looking around at homes for sale as well as rent and keep stumbling across the term "short sale" in the listings. Does that mean this house is in foreclosure or what?
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K J  Mehmood
K J Mehmood
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Here are 11 Reasons Why Buyers Might Not Want to Buy a Short Sale:

1) Sellers Paid Too Much.
If a home sold for $500,000 a few years ago and is now for sale at $400,000, that doesn't mean the buyer is picking up $100,000 of equity for free. It means the seller paid too much in a rising market and now the market has fallen. It means the seller has no equity.

2) Sellers Borrowed Too Much.
Banks that were eager to lend money in appreciating markets sometimes allowed borrowers to over-mortgage the home, meaning the borrower's loan balance exceeded the value of the property. Appraisals are subjective, and not all appraisers will place the same value on a home. Although against the law, some appraisers are pressured by banks to appraise at the amount the home owner wants to borrow.

3) Stringent Qualifications.
Inexperienced or unethical real estate agents might push a seller into considering a short sale when the seller does not qualify for a short sale. Sellers must prove a hardship and submit evidence of the hardship to the lender for approval. Some agents list homes as short sales without ever talking to the lenders or pre-qualifying the sellers.

4) Homes Sell at Market Value.
Lenders aren't naive or unaware of the value of a home. Lenders will insist on a comparative market analysis, known as a CMA, or broker price opinion, known as a BPO. If a lender believes a better price can be obtained by taking the property back in foreclosure over a short-sale offer, the lender may hold out for a higher price. That price will be close to market value. Lenders accept short sales when the home is worth the short-sale price, which means market value.

5) Homes Sell "As Is".
If a mortgage company agrees to a short sale, it is most likely also paying the closing costs in the transaction. Lenders ask buyers to purchase the home in its present condition. Lenders typically will refuse to pay for:

Suggested repairs disclosed on a home inspection.
Pest inspections or work necessary to issue a clear pest report.
Roof certifications or roof repairs.
Home protection plans for the buyer.
Deferred maintenance.
6) Length of Time to Close.
Depending on when the Notice of Default was filed, the lender's back-log of foreclosures and how much paperwork the seller has already submitted, it could take anywhere from two weeks to two months to get a response on a purchase offer from a lender. In addition, if two lenders are involved because there are two loans secured to the property, it could take longer to satisfy the demands of the second lender.

7) Lenders Can Change Conditions.
Some lenders reserve the right to renegotiate the terms of the short sale at the last minute. If the market changes, new laws pass or new information crosses the lender's desk, the lender can attempt to change the terms of the contract. Lenders generally have lawyers at their disposal, and ordinary buyers do not.

8) Lenders Discount Commission.
Generally, only lenders who have sold loans to Fannie Mae or Freddie Mac are paying traditional real estate commissions to real estate agents. The rest may want a discount. Moreover, agents end up doing two to three times the work of a conventional transaction and don't appreciate getting paid less to do more work. If you have agreed to pay your agent a certain percentage under a buyer broker agreement, you could be liable for the difference between what the lender will pay and what your contract stipulates, if your agent refuses to waive the difference.

9) Higher Buyer Closing Costs.
Because lenders rarely will pay for any extras, like a seller would be willing to do, if you want any of those extras, you will pay for them yourself. Sometimes lenders will refuse to pay for standard seller closing costs such as transfer taxes, too. If you want specific inspections, you will probably pay for them out-of-pocket.

10) Lose Control of Transaction.
If you need to close escrow by a specific date, lots of luck with that. A short sale home closing process takes an indefinite amount of time. The seller's lender calls the shots, not the buyer nor the buyer's lender. If you are trying to close escrow concurrently with the sale of your home, it might not happen.

11) Little Seller Motivation.
When the seller discovers that the short sale effect on credit is close to that of a foreclosure, there is little incentive for a seller to cooperate with a short sale. Although sellers may qualify to buy another home in 2 years after a short sale versus 5 (with restrictions) on a foreclosure, some have no intention of ever buying another home again.

Posted Monday, June 14, 2010 12:22 AM by K J Mehmood | 2 Comments
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This is a great response! It really details the troubles with short sales that are not always conveyed by the media. I have many buyers come to me asking about short sales when in reality what they are looking for is a good deal.

If you are interested in reading more about the differences between a short sale and a foreclosure check out http://ruttrealestate.com/uncategorized/short-sales-foreclosures/

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Edie Veenstra
Edie Veenstra
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Mr. Mehmood,
You aren't totally in the ball park with your comments. Buying a short sale simply means the homeowner is asking the bank or lender to take less than what they owe on the property. In the real estate climate of today, banks are typically going to allow that sale IF and this is the only caveate, the seller/owner can show there is a hardship.

www.edieveenstra.com or http://hosted.cdpe.com/80682/ for some real answers

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very interesting. thanks a whole lot!

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The simplest definition of a short sale is that the house is currently being sold for less than what the owners owe on their mortgage.
Sometimes banks have already agreed to accept the losses and other times the won't consider a short sale until they already have a buyer. Each bank has their own policies on how they handle short sales. For a buyer it means you will usually have to wait longer to get to a closing. For a seller it can be very tedious as gthey must provide financial documentation to the bank with updated information to prove they cannot pay off the loan. Short sales often but not always precede a foreclosure.
A short sale will definitely impact the sellers credit in a negative way. It will not impact a buyers credit.

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Nuncita Cherry
Nuncita Cherry
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A short sale occurs when a home owner is having financial difficulty and is unable to make their mortgage payment or it is eminent that in the near future they will default on their mortgage. The home owner then request from their mortgage holder that they be allowed to sale short of the full amount owed on the home. The home owner has to prove a financial hardship of some kind; it can be loss of income, medical or health reasons, job relocation, military, incarceration, death or divorce. There are actually 16 different kinds of hardships which can precipitate a short sale. If the lender agrees the home owner must provide extensive documentation including bank statements, tax returns, a hardship letter and pay stubs if available. The bank then reviews the information, request an appraisal or BPO (brokers price opinion), present their findings to any investors who may actually hold the note (loan) on the home and then they either approve or reject the short sale. The home usually must be on the market for sale and there must be an offer on the home before the bank agrees to the short sale since the bank needs to know what they are going to net on the sale of the home.

Anyone buying or selling a short sale needs to have a Realtor representing them who has had some additional education in selling distressed properties. Working with short sales is time intensive, top heavy with paper work and requires sensitivity and a high degree of professionalism when working with banks. There are usually different requirements and timeframes for each bank and oftentimes the initial contact person is undertrained, ill informed and overstressed. All parties involved need to be committed to completing the short sale and bring a good amount of patience to the transaction since it can take anywhere from a few weeks to several months to complete depending on the bank and the home owners circumstances. Because of the amount of time the listing agent is required to commit to processing the short sale they do sometimes require that the buyer and their agent commit to a specific amount of time and also place an earnest money deposit with an escrow company, where they are used, or with the listing brokerage or attorney. This is to assure that the buyer is serious.

For a home owner a short sale is almost always better than a foreclosure and it usually is better for the buyer also because the home is many times in better condition than a foreclosed property which may have been sitting vacant for an indeterminate amount of time or the foreclosed home may have been vandalized.

I hope this helps.

Nuncita Cherry, Prudential California Realty, Stockton, CA
(CDPE)Certified Distressed Property Expert, (SFR) Short Sale and Foreclosure Resource,(FACS) Foreclosure Alternatives Certified Specialist

Nuncita Cherry Agent Real Estate Professional
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I moved into this home in San Bernardino, CA with a year lease,half way into my lease the property managment company (a nightmare dealing with them) said that the owner wants to get a "feel' of the buying market, they are not selling, she just wants to know. Well , a sign went up in front of my home the next week and people started coming into my house some 24 hrs notice and some when I wasn't home. My neighbor said some poeple came way before the sign was up. The company never mentioned a sign being posted for sale. I called the agent and he said it is a "short sale" and now I think it is in foreclosure because I get letters from different companies and got a tax assessor delinquent notice on the house. What do I do: My lease is up in August 2011. The property manager hasn't came to fix anything in months( running toliet, overgrown weeds and grass, even though the lease said they will do fixtures and gardening.Please reply ASAP! Thank you.

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How much lower should you offer than the listed price? Say the listed price is $162,000?
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Tracey Rosenblatt - TGR Group, Inc
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Before making an offer on a property you need to be working with an agent who should do a CMA - Comparative Market Analysis for you, this will give you a realistic market value of what you should be offering. If you make a low ball offer that is too low expect it to be rejected. If you are making an offer on a short sale "House worth less than the mortgage amount" or a foreclosure "Bank Ownded", be prepared to be waiting about 6 to 8 months for it to be rejected and you have had your good faith deposit held up all that time cutting into your valuable buying time. The bank gets a BPO - Broker price opinion done on the property before having it listed (Foreclosures) which falls into market value. An experienced agent will do a CMA for you and take into consideration it's condition if the listed price is not already a figure that the bank has stated it will accept. If you have any more questions you can call me and i will be glad to answer them. I am Short Sale and Foreclosure (SFR) Certified.

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Agnes Tabor
Agnes Tabor
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You must look to your REALTOR for help on this they will be the one to know and understand the market. It really doesn't matter what the list price is what does matter is what the market is doing in that particular area and the listing history for that property. Good Luck to you.

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start at half. Read the responders facial and body language to see if it is immediately acceptable. BAnks are anxious to get short sales and foreclosures off the books. I read that the Fed "reimburses" banks [a lot!] for their "pain and suffering" to do the deed. They will get the difference back plus bonuses. They make more money doing this than carrying the uncollectable mortgage of a distressed homeowner. The Fed will not help the homeowner directly, but does help the banks...with our tax dollars.

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Tami Winbury
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You need to evaluate the recent solds in the area and the condition of the property you are considering to make an offer on to decide your offer price. Hope this helps! Tami

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what happens is the seller will owe the bank the difference between what it sells for and what they owe.
So the seller has to approve the price. Usually by the time the bank has it for short sale, the seller does not have a lot of choices. You should do this: offer what they ask, get it inspected and begin the deducions.
Say it needs plumbing fixtures or roof problems or pool problems or something, then you ask seller to reduce home by so much, whatever might be, in a counter. They usually do.

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It means the seller is trying to avoid forclosure by selling the property. However they are selling it for alot less then they owe to the bank. That is the quick answer anyway. What you need to know is short sales take an extremely long time and you have to be prepared to be extemely patient and also understand that you run the risk of waiting several months for the bank to simply say NO!

There are pleanty of other types of sales that you can find equal pricing and half the guessing games example Estate Sales or REO's...

If you have any other questions or would like help with your home search let me know anthony.curty@realestate.com.
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Thanks- that's what I was looking for. I knew people always complained about short sales, but couldn't remember why.

Ok so it sounds like I'd have to get another lease at least if I wanted to do a short sale... not sure if that is ideal.

Thanks for the help appreciate it

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It might be worth asking your landlord if he'd consider letting you go month-to-month on your lease. If you buy a short sale, you need to have some flexibility. If your landlord won't agree to a month-to-month arrangement, there are short-term rentals available. I found some good deals on sublet.com. (Fortunately, I'm not going to need to go that route, but I was worried for a while.) If you are really interested in a short-sale, find a realtor who specializes in them. Mine does, and she knows how to talk to the banks and get them to go through. There lots of extra hurdles with a short sale (lien releases, etc.) and a short sale specialist will able to get through them.

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Short sale is a way out of the loan or a foreclosure with the market the way it is try to keep your home.Empowerment is home ownership.I have been working in Mortgages for years and my specialty is foreclosures.There are many options to keeping the house with out giving the keys to the bank or doing a short sale.My name is Rose

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Millie Valentin
Millie Valentin
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I have lost a whole lot of deals to Short Sales, Buyers back out sometimes because banks take too long ot they go with the highest offer or casd down!

Mildred Valentin,Realtor
Exit Realty Van Zandt

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A short sale is basically what everyone has said and it is a wait and see game I did a short sale in 2009, the best thing about it is they have programs for this so you don't go at it alone. They provided the lawyer, the realtor and did all of the leg work all I had to do is wait on the sell to take place. They took care of the mortgage company calls and questions, they put the house on the market, I did show the house because I was still living there and I did not want a lock box. While I awaited the sell I could not pay any mortgage because that would mean starting back at ground one of the paper work and trying to get approved for the short sale again. I was truly blessed because I started my process in like February with the program questions I happened across and the house was posted in May after the bank agreed, then it sold by July. The lawyer and realtor handled everything all I did was show up at closing to sign the paper work. I received all of the paper work in the mail of who the house sold to , the amount it sold for and the letter's of forgiveness from each of the lenders that cancelled the debt for payment's received and it does not show up on my credit it is like a normal sell took place and I received letters from each of the lenders as proof of no debt. So my advice would be find a good company/program that handles short sales. It is worth it if you can stick it out with the wait and see, because I was otherwise drowning and did not want to do bankruptcy nor forclosure. I really wanted my house but could not afford it on my own once the economy tanked like it did. I purchased the house for 245,000 in 2006 by mid 2008 it was at 267,000 by 2009 it had flipped upside down worth 147,000 because everyone was abandoning there homes and my mortgage went from $1867 to $2567. I had to do something quick so the short sale was a blessing sent my way and I didn't get anything from the sale but I was able to save for my move out of state.

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Agnes Tabor
Agnes Tabor
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No, it is not in forclousure! Many people look at a short sale as a "Holly Grail" of real estate opportunities. First let me try to exlain a short sale. The home owner is "underwater" and looking for a way out but does not want the bank to forclose. Now an alternative has come along where an owner will approach the bank with such information, the bank will let owner know the amount they want at which point the property may be listed and the process begins. A buyer making an offer is in for a long ride as a "Short Sale" could take 6 months or longer to close and may never close thanks to the banks and lenders; in the meantime a buyer has lost the opportunity to look at other properties which in many cases present a better buying opportunity. Find a REALTOR in your area that understands the market and listens to your wants and needs to bring you to the conclusions best for you. Real Estate is still a long term investment. Hope this was helpful?

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Let me say this, not all Short Sales take a long time. It depends on the Bank, some are eaiser to work with than others. You would need to find a really good agent that really knows about the banks. In addition some other homes may be priced right. You just have to get a good agent working for you. It could be a lot of money that you could save, so don't give it up.

Good luck.
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Shirley is exactly correct. Short sales can take a long time or can be quick. It depends on if the bank is on the ball or not. Also, you have to remember that a short sale might not as great a deal as you think. If a property has suffered a decline in value and the bank is trying to sale for less that the loan balance but higher than the fair market value, that is not necessarily a good deal.

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Agnes Tabor
Agnes Tabor
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I have been involved in 3 short sales. The first one closed in 14 days,cash, the reason we could close so quick is that another buyer had just walked away and the bank/lender had approved everything. Of the 2 remaining, we have had a contract on 1 for 5 months and no closer to any kind of answers (bank came back with a price $20,000 higher than we offered but my buyers accepted)but have not heard anything further; the second one has been under contract for almost 60 days and we have had no responce in fact on this one the sellers have even hired a seperate ss mediator to keep after the bank/lender. Both my buyers has now come to realize that while they wait they are looking other better opportunities that they could close on quickly and have more negotiation capabilities. Now a forclousure is a whole different matter.

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Roanoke Homes
Roanoke Homes
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A short sale occurs when the net proceeds from the sale of a home are not enough to cover the sellers mortgage obligations and closing costs, such as property taxes, transfer taxes, and the real estate practitioner s commission. The seller is unwilling or unable to cover the difference.

Some although by no means all short sellers may also be in default on their mortgage loans and be headed for foreclosure. However, home owners who bought at the top of the market or who took out large amounts of equity with a refinance and who now need to sell because of divorce or job transfer may also find themselves upside down, owing more than the home is currently worth when closing costs are factored in.

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When an owner is having trouble paying the mortgage they talk to the bank and the bank agrees to accept a short sale, meaning the home sells for less than the person owes on the mortgage. Still affects credit score, but not as bad as a foreclosure, which is when the bank takes the house from the owner and put's the house in the bank's name and sells it.

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A short sale is when a home is sold for less than the balance of the mortgage. This is usually done to avoid foreclosure, however it can also happen when a home is in foreclosure.

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Travis Waller
Travis Waller
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A short sale is when the bank allows a seller to sale his home for less than what is actually due towards the mortgage on the property. For example, you may owe $400,000 on your mortgage but the similar homes in your neighborhood are only selling for $300,000. The $100,000 difference between what is actually due and what you can actually sell your home for is the "forgiveness" that the bank will allow on the sale. This is a short sale. The difference in what is due vs what you can sell the house for doesn't have to be paid back to the bank in most states as long as this home that you are short selling is your primary residence. On an investment property, you would have to pay taxes on this amount.

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Guerry  Clegg
Guerry Clegg
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There are many good answers on this thread that were accurate when they were posted. One critical thing to know, however, is that short sales are evolving daily as the lenders and mortgage insurance companies change their practices.
While it's true that a short sale is one where the lender agrees to take a payoff that's "short" of the full payoff -- hence the term -- it's important know that it's not always just the lender making the decision. They might have to get approval from a mortgage insurance company or the investor of the loan, which is often a large company itself. In the case of VA, FHA and USDA loans, there are guidelines with which the lender must comply to avoid absorbing all of the loss.
I say all of that to explain why some short sales can be approved quickly, and others may take months. You do need a buyer's agent who has some short sale experience or education. It really helps if the listing agent has that experience and education as well.
Lenders are getting more proactive about working short sales because they already have too many foreclosures on their books. In most cases, a failed short sale will just result in another foreclosure.

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mike akers
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i was coming into financial troubles when i contacted my bank (HSBC), and they couldnt do anything for me, since i was current on my mortgage. after missing a few payments they were in continuous contact with me to work things out. after a approval for a modified loan, i approached the bank about a short sale. considering HSBC, they actually rejected my buyers first offer stating it wasnt fair market value, so my buyer increased his offer by 6k and they approved it. a real good realtor can do a great deal of good. i bought at the peak for 232k and short sale of 76k. thanks to Keye's realty in coral springs, fl! thanks Dennis C

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Tami Winbury
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What is a short sale?
A real estate short sale is a form of agreement between the seller of a home in the
beginning stages of foreclosure and their lender, allowing the home to be sold for less
than the existing loan balance outstanding. The mortgagee would accept less than
the loan amount in order to avoid a foreclosure proceeding. This short sale would
result in a substantially discounted purchase price for the buyer of the home. The
buyer would then proceed with the purchase of the home much the same as in any
conventional real estate transaction.
Why would a lender agree to a short sale?
Lenders are in business to make money and keep down losses. When a borrower
gets behind on their loan payments, the lender has the right to take the property to
pay off the debt. However, in the current real estate market, many properties cannot
be sold for the amount owed against them. It is possible to persuade lenders to take
less than the full amount owed if the lender believes that it will make more money
through a short sale than through a foreclosure.
How long does it take to close a short sale?
This is totally up to the lender. Some lenders take as little as two weeks, some over
six months. The only way to know is to start the process. The key is making sure that
your short sale package is complete, and that you follow up daily with the lender.
I want to do a short sale and have a 2nd mortgage,
does this make me ineligible?
No. Both of your lenders will need to be satisfi ed in some way to complete the short
sale. If your fi rst lender will be paid off by the sale, then you just negotiate the terms
with the second lender.
Will a short sale destroy my credit?
Yes and no. The short sale may not show up on your credit. In fact, most mortgage trade lines report Mortgage Paid after a short sale. Any late payment history will still appear, as will any Notice of Default fi lings. What won t report is an actual foreclosure. A promissory note may prevent the lender from reporting the mortgage as a loss. In today s credit market, a foreclosure may prevent you from obtaining a mortgage for at least 5 years, longer than a bankruptcy.
What is a Hardship?
Some examples of a hardship include:
Reduced income or unemployment.
Inability to work due to health reasons.
Separation or divorce.
Medical bills.
Business failure.
Death of a spouse.
Adjustment in mortgage payment or
unforeseen increase in your monthly expenses.
Any other circumstance that cripples your ability to repay your mortgage.
What is the effect of short sale on the seller?
The seller s debt is cleared. Some lenders may mark the transaction as a settlement, which will hurt the seller s credit score.
Are there tax implications in short sales?
Much like the issue of credit reporting, the circumstances are individual to the lender. As a short sale represents a loss for the lender, they can report the amount lost a debt forgiveness to the seller. If a formal tax form 1099 is filed, the seller may be responsible for paying taxes on the amount
of debt forgiveness. As of Jan. 1,2011 there are no tax implications on the first loan. Verify with your lender.
Can investment properties be short sold?
Most defi nitely. Any type of property can be sold through a short sale.
Tami Winbury 805-798-3412 Keller Williams Realty DRE#01878369

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Hi I am looking at purchasing a short sale property at the moment. However, the bank has already approved the asking price....so does this make a much smoother transaction?? Can anyone advise me of anything that could go wrong from here considering the price has been approved? Thanks

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Urban Living Solutions,  LLC
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This is not a dumb question as I had to ask my realtor the same thing. She told me a short sale is where the owner owes more than what the house will sell for so you the buyer would make and offer and the Realtor would take this to the bank and see if they will accept it. It is asking the bank for forgiveness to the remaining balance owing. Sometimes they will accept and other times they will not. It is up to the bank if they want to hold the current owner responsible for the difference owing is how she explained it to me. Not sure if that is 100% correct but this is how it was explained to me and my husband.
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All true but I think the seller has to prove a financial hardship as well.

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Ray Garcia
Ray Garcia
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A "short sale" happens when a bank agrees to let a homeowner sell his property for less money than what is owed. The homeowner has to prove a hardship in order for the bank to agree. The process can be leangthy.

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Sandy Sivits
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what a short-sale is has been gone over so I will address the offer amount. The seller owes more than it can sell for and the bank is eating the shortage - they want an offer at MARKET VALUE - and they are having agents not involved in your transaction provide comparable sales to them - these are known as BPOs (Broker Price Opinions). Some banks may counter a low offer and others will not. Realize the clock is running - the best strategy to get the property is to offer a FAIR PRICE - trying to "steal" it is really counter-productive for 2 reasons (1) the banks knows the fair market value and (2) even if they do take your low offer, the next buyer in the neighborhood does not want to pay more than you did (your deal is no longer a deal).
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the banks created the first round of home abandonments and the way the economy is going....brace yourself for another round. Homeownership is not just about having title. It is about the extra $1000 a month to keep up the landscape, plumbing, flooring, roofing, huge taxes [to pay for first round of bailouts], INSURANCE.....HOA and FLOOD. Almost everywhere the FED Flood Insurance Program is being placed on Homeowners. Homes as big as my old grade school are now being sold for cents on the dollar. Who is buying? Will they be able to support the costs of the McMansions? or will these monoliths to our selfish culture be subjected to abandonment and neglect, over and over, until they fall down? I have seen the shoddy building practices and their results. As in back patio concrete cracking within 4 months on a $600,000 home ....and dishonest builders hit-and-run. No recourse against unethical General Contractors/Builders. The written contract is EVERYTHING. Even, or especially, when that person is a "family friend".

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3 years ago
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A short sale in simple words - is when the owner of the property owes to their lender more than the home is worth. The term is short sale but the process is a longer sale. Make sure you request a CDPE certified distressed property expert Realtor who are the ones educated on short sales. It does not cost you more. http://www.shortsales333.com

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4 years ago
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It is where the you sell the property for less than you owe while the bank takes the hit, but the bank must approve you for it.... the main reason most people short sell their house is so they can avoid foreclosure. But a short sale WILL effect your credit a great deal. Just like a foreclusure........Shirley is correct not all short sales will take a long time...

Hope that helped!! good luck finding a house

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4 years ago
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When the value of the property is less than the loan(s) amount(s) and the owner can not make the payment(s), in lieu of foreclosure, the lender may allow the home to be sold for less than the amount of the loan(s), if the owner qualifies (the bank wants to know that the owner CAN'T make the payment). Selling for less than the current loans is a short sale.

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4 years ago
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For a complete, in-depth answer read The Key to Stopping Foreclosure Article
http://www.HowYouStopForeclosure.com/special-report-how-you-stop-foreclosure.pdf

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3 years ago
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If you're buying a short sale, be sure to know how long it will take the other bank to make a decision. We were lucky in that it took the seller's bank only 2 weeks. Also nowadays, realtors on the seller's side have started locking up potential buyers' earnest money while the bank makes their decision on a short sale, i.e. the seller's realtor won't give your earnest money back unless they get a better offer or until the bank makes a decision, in either case you can't just rescind the offer without losing your earnest money. While this may be unethical, it's unfortunately it's not illegal.

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Gayla Jones
Gayla Jones
Browsing Housing
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3 years ago
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In a nut shell it is when the owner owes more then the house is worth and the Bank still owns it also the owner an the Bank has to agree an the selling price

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My daughter had to short sale their house in 2011. Wells Fargo. Loans $645,000 due to dishonest builder from Grand Junction, Terry Davis. He was supposed to build turn-key for $400,000. Real Estate Agent Darrell Gilks in Montrose, CO, found a buyer almost immediately and sale was completed quickly. Due to Fed law good until 2012, they paid no taxes [so far] to IRS. The AGENT is the key. If you are in Colorado call Darrell. No, I am not related. I just know an honest man by his dealings.

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Kent Simpson
Kent Simpson
Real Estate Professional
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3 years ago
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Simple answer: A Short Sale is the term used when a seller is trying to sell their home for less than what they owe ("short" of the mortgage). This is NOT a transaction to be considered without the assistance of a licensed agent who has experience working with buyers of distressed properties.

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3 years ago
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It's not a dumb question! A short sale is when the sale doesn't pay off the mortgage(s) on the property.

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3 years ago
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I'm looking for a CHEAP 2 bedroom, in the everett/lynnwood area that allows pets.

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3 years ago
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Don't ask GMAC for a modification as all they do is lie to their customers. GMAC is a fraud. Back in April of 2011 they took off $100.00 off of my mortage and called it a Modification. I am doing a short sale on my house call me if you would like to see it. I am on south 8th street in Brighton,Colorado. My number is 720-436-3776. Thanks.

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2 years ago
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http://theweek.com/article/index/224162/short-sales-the-answer-to-americas-housing-crisis

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2 years ago
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The investor will try and accept less than the full payoff amount to satisfy the loan. Will normally try for 82%.
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2 years ago
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It will not hurt you credit as bad as a foreclosure or bankruptcy would. But if you are defaulting on your mortgage payments and you have nothing else before foreclosure. Short Sale will normally come in to play for most mortgagors.

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Pedro Espana
Pedro Espana
Rental Housing Professional
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2 years ago
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Remember in school they said "There is no dumb question". In a short sale you have a primary residence that is distressed and the owner owes more then what the home is worth (underwater).Payments can not be kept up.This is an alternative to foreclosure where the bank takes the property back (REO).
If you have any friends or family in Manhattan and they are underwater. Please pass on my info to them. I am a CDPE and may be able to assist them. There is a goverment program that will expire 12/12 so they have to get the ball rolling because this takes time.
Pedro Espana
Hecht Group
p.espana@hgrny.com

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2 years ago
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I recently bought a foreclosure in Brooklyn NY with no regrets. If you're currently looking to purchase one you can contact www.massada.com

Good Luck!

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