what is a quick sale of home? please explain a short sale?

Asked by Gigi, Chicago, IL Mon Aug 17, 2009

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Margaret Ama…, Agent, Sarasota, FL
Mon Aug 17, 2009
Gigi, you already had plenty of explanations of what a short sale is. Here is what it is NOT, quick.

A short sale is really a very long sale timewise if you get to the end. I say if, because in the back of it all some loans are self insured and whie I can't proof it there must be something in the insurance that triggers indemnification when forecause happens. I just can't make ryme or reason to the way banks are dealing with some files in a faling market.

Since they are not stupid, it has to be something else that makes them act dysfunctional like a third world outfit. Sometimes they picker for peanuts and won't approve the sale ony to discover that in a few months that same property sold for way less as a bank owned property.

Stil for some owners and loans, a short sale is a wonderful way out. It's a lot of work and your Realtor needs an ever expanding knowledge base as he/she tirelessly works on those short sale for half the money they woud earn in a normal sale.
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Buell (Hal)…, , Red Mountain Ranch, Mesa, AZ
Mon Aug 17, 2009
Hi Gigi,
I am not sure about the quick sale of home portion but here is what a short sale is.
A Short Sale is when the current owner is having a problem making their mortgage payments and are close to default and having their property foreclosed on. The owner knowing this list their property For Sale as a short sale. Once there is an offer placed on the property and the owner accepts the contract it is forwarded to the lender for their approval.
What the Owner/Borrower is doing is asking the bank to take a shortage on the money loaned on the property (Short Sale). Here is the kicker, the lender is not required to acknowledge that an offer has been placed on the property nor do they have to respond. But the Owner/Borrower can not sell the property if the sales price is less than the amount owed. Another thing is that the owner can not receive any compensation from the short sale.
Therefore short sale does not mean a quick sale, in fact it is usually just the opposite and takes a long time to close on a home only because you are not getting a response from the bank. If you are going to purchase a short sale it is advised that you only put in offers on those properties that the lender has already approved a short sale.
I hope this has been of some assistance to you.....Hal
Web Reference:  http://www.halburgess.com
0 votes
Philip Sencer, Agent, Chicago, IL
Mon Aug 17, 2009
In a short sale, the owner cannot sell the property for more than the mortgage so the lender agrees (in theory) to eat the loss once an offer comes in. In reality, it depends on the bank and the financial position of the owner and what the ultimate offer is and to some degree.....luck, as to whether a deal is ever done. I have had 2 where the bank refused to accept the eventual offer thinking the property was worth more so they ended up a foreclosure.

philip
0 votes
Kipp Blackbu…, , Chicago, IL
Mon Aug 17, 2009
A short sale is essentially a sale of a property intended to avoid foreclosure. The bank is willing to accept letting the owner off the hook for an amount of money that is less than what is owed to the bank. These transactions can be quite complicated.
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