Not great odds, but that means 40% do go through. My recent experience is that the banks are getting better at their timing, but what the banks want on price and what they get still can be an issue.
The long and the short is, short sales can reap rewards in price. Foreclosures are easier and faster, so look at the market to see which path you want to take. If you walk away from a short sale you can lose your earnest money, but you can also get protections with contingencies. Not the best way to start though. If you have patience, a lot of patience and time to wait and if you are careful not to get your feelings hurt if it does not succeed, then go for it. But keep your eyes on the market, just in case it does fall through.
Trulia asked all us brokers the question about short sales on February 4th. My answer was rated the best answer by Trulia http://www.trulia.com/voices/Home_Selling/Is_it_guaranteed_t
Beverly you can get extremely good deals in short sales however many times from the point you submit your contract to the time the bank approves it can be lengthy. In a straight purchase or purchasing a home that already been foreclosed on it will normally take the traditional time from contract to close. Just remember when you are ready to purchase make sure you are pre-approved so that when your broker presents an offer your offer will be taken seriously.
If you have any questions feel free to email me firstname.lastname@example.org
Suzanne's response below was well stated.
"Unfortunately 60% of short sales do not go through, but more than half is because of buyers bailing, then nearly half is because the banks come back too high "
Real Estate professionals do track the sales data regarding short sales. For many short sales the process takes nearly a year, in one case of mine over 2 1/2 years, only to fail in the end.
Generally, in Florida, a buyer can save 15% through the purchase of a short sale. In a recent community in which I just published a "Market in a Minute' report, the short sales saved 37%. This is an EXTREMELY rare occurrence.
Short sales are suitable for a select set of buyers. Check with your agent to see if your needs are compatible with a short sale. For over 70% of buyers, short sales have proven to be incompatible in Florida. The complex nature of short sales and assortment of individuals or organizations involved in the process make the successful closing of a short sale, as close to a miracle as anything I have witnessed recently.
If you believe in miracles, short sales may be for you.
However, miracles are not discounted and take an eternity.
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If you are questioning whether to do a short sale first or purchasing another property and then trying to attempt a short sale later, please call me.
This is not necessarily an easy discussion and acquiring information thru Trulia will get you mixed responses. Always seek counsel from a real estate attorney specializing in this area.
I have several I can recommend and review the process if you are considering.
Laura Meier l @properties
Short Sale Specialist, Foreclosure Consultant
212 E. Ohio, Chicago IL 60611
CELL: 312-282-2122 /FAX: 312-506-0222