What is a short sale?
The most humiliating, aggravating, convoluted, unpredictable, complex method of selling distressed real estate imaginable. It is a real estate environment where there exists an illusion of rules but anything can and does happen. Short Sales are the "Wild, Wild West of Real Estate."
Few buyers are comprised of the rare fabric needed to successfully see a short sale to it's conclusion. If you have any limits regarding thresholds of time or neglect or abuses or illogical process or incompetence, a short sale is not for you.
A short sale occurs when a home is sold for less the the mortgage balance, due to hardship, and the bank, investor, mortgage insurance company, servicer and finally current owner become negotiators throughout the process. It is saturated with parasites brandishing titles of suspicious distinction. All, justifiably seeking compensation for the HUNDREDS of hours short sales require. This is all on the 'selling' side.
On the buyer side exists their own set of 'non-sense' to deal with if it is a financed purchase of a short sale..
The seller involved in a short sale must be consistently reminded of the real goal, or they will be tempted to throw in the towel and endure 17 years of financial purgatory in FL.
The buyer must be consistently re minded "this IS what you signed up for" to get a not so good deal in order to keep them committed.
In the end, it is the seller who benefits most by leaving the transaction with no gain and no residual debt. Ending up with NOTHING is their best outcome.
The buyer MIGHT save as much as 5% in the purchase that involved mind crushing incompetency and never ending delays and ever present distressing uncertainty.
What is a short sale? A real experience suitable for very few buyers and the only acceptable exit for those who find themselves on the short end of the economic recovery.
Before grabbing what appears so shiny and bright, have a real heart-to-heart with your real estate professional. Do not commit your agent and the army of folks required to have their time wasted by someone who can not see the process to the end. 70 % of initial offers on short sale FAIL because the buyer 'DID NOT BELIEVE' and jumped ship before it docked. It wasted the buyers time, their agents time, but has little effect on the outcome of the short sale.
Few will find a short sale in 2014 a rewarding experience.