Home Buying in 97045>Question Details

Tim Martin, Home Buyer in Beaverton, OR

What’s a Short Sale? Should I Buy One?

Asked by Tim Martin, Beaverton, OR Mon Oct 22, 2012

Any advice would be appreciated...

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A short sale means the seller is trying to get their lender to take less than what is owed on the home.

For example, say the seller owes $250,000, but the home is only worth $200,000. If the seller cannot afford to pay the mortgage and cannot sell the home, it will go to foreclosure.

Short Sales are not short! They can take up to 6-9 months or longer to close and more often than not they never do close.

The way negotiation works on a Short Sale works is the seller representation has to convince their lender to take the “Short” amount instead of going through foreclosure. So the bank might get $200,000 instead of $250,000 to avoid taking the property back.

Because of how complex they are, how long they take to get approval, and the relatively low success rate of completion, I recommend to most buyers to avoid short sales if possible.

Most of the time, there are no repairs done for the buyer because the seller has no money and the bank won’t pay for them. You rarely end up getting the property for lower than market value because the bank still goes through evaluations.

If you have anymore questions call or email me. 503-857-6969 richjones@oregonrealty.com
1 vote Thank Flag Link Mon Oct 22, 2012
I'll definitely call you! Thanks for answering my question thurally=)
Tim
Flag Mon Oct 22, 2012
For our buyers we dedicate ourselves to paying attendtion to our client's needs. The right property and the right location at the right price. Accredited Buyer's Representative.
My cell number is 971-570-2216
Sincerely,
Annie
0 votes Thank Flag Link Mon Jan 28, 2013
I've been involved in several successful short sales that also were great deals for the buyer. However, short sales are not without risk (not counting the inconvenience of longer-than-usual closing times). Some risks include losing money invested in inspections (when a previously approved sale later fails to close), difficulty in completing inspections because of utilities being disconnected, losing out on a better property while waiting for an uncertain closing of a short sale, etc., etc.

I would not recommend against a short sale, but I would recommend that you hire a good agent to counsel you as to risks and benefits, especially as they apply to specific properties that are on the market. Only then, can you know if a short sale might work for you.

Best of luck!
0 votes Thank Flag Link Thu Oct 25, 2012
A short sale means the seller owes more on the house than he can get and so it does not mean short on time but short on funds. Buying one -as long as you have patience can be one of the best buys you might be able to get out there. Again, you need patience,...but many times you will do very well by buying one!
0 votes Thank Flag Link Mon Oct 22, 2012
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