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 â€œShortâ€ 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 wonâ€™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 firstname.lastname@example.org
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!