Short sales are pre-foreclosures, owner trying to sell before it goes into foreclosure. In most instances neither the sale nor the listing price has been approved by the bank. Below is some more information regarding short sales:
* They can take up to 6 months (or more in some cases) just to get a response from the bank - which can be an acceptance, counter-offer or rejection.
* If the property has more than one lien holder, you are at the mercy of the timing of both. Plus both will have to agree on how much go to the jr lien holders, which rarely occurs.
* In most instances the seller keeps the property active (which can be done by several ways without violating any rules) and can receive over 20 offers on the same property.
* Many times the bank counter-offers with a higher price and/or the bids drive the price up. It is very common for short sales to sell well over asking price.
* Based on the latest figures only about 10% of short sales ever close. If you add to that the fact that each property can have many bids, you will see that each individual offer will have less than 1% chance of getting the property after waiting many months for it.
Carlos J Ramirez, PC, ABR, CNE
Associate Broker, HomeSmart -