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Understanding the short sale process

Asked by Trulia New York, New York Wed Nov 28, 2012

If more homeowners understood the "short sale" process do you think they would be more willing to sell?

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Answers

4
Probably but you have to take into account the emotional attachment.
0 votes Thank Flag Link Mon Jun 23, 2014
Do you understand what a short sale is? A short sale is when a home owner HAS to sell their home “Short” of what they owe the bank. There must be a legitimate reason such as: job loss, over whelming medical bills, death of supporting spouse, or divorce without spousal support. The bank/lender requires documentation that the owner can’t pay their mortgage and why. The owner must put their house up for sale and legitimately try to sell it. The bank/lender requires documentation of comps for fair value. A short sale is an emotional & difficult experience for the seller. Only when a contract for purchase is given to the bank, does the ball start rolling. Usually short sales take several months to be completed. The banks/lender can wait to receive several offers until the bank/lender decides the sale price is sufficient without letting the seller or buyer know. There are no guarantees from the bank and it will be sold “as is” without any fix ups from the seller.
As a buyer of a short sale, you can get a house at a good price with patience and the knowledge that you will have fix ups on your own.
0 votes Thank Flag Link Thu Apr 10, 2014
I don't think so. Homeowners keep their home until they are able to make mortgage payments, the last mile. At that point they will consider all options including short sales and bankruptcy filing.

A friend of mine knew about short sale process but delayed it for about 2 years, after which he had no choice and sold it.

Do we have any published studies on this topic? My answer is based on my personal experience.
0 votes Thank Flag Link Thu Apr 10, 2014
Hi there,

This is a very general question, it would really depend upon the seller.

Best Regards,
Tasha Trice
646 926-0609
0 votes Thank Flag Link Sun Dec 2, 2012
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