Property Q&A in Sudbury>Question Details

Cindy, Home Buyer in Hudson, MA


Asked by Cindy, Hudson, MA Tue Mar 3, 2009

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The long and short of it is that the Realtor is disclosing that it could take that long for the bank to approve the sale. For a complete explanation of short sales in Massachusetts see the link below. This reference has a tremendous amount of info on short sales.
0 votes Thank Flag Link Mon Jun 1, 2009
Hi Cindy, A short sale is when the sale price will be less than the amount of the mortgage owed on the property. 90 days.... means that it could take at least 90 days for the lender to decide if they will accept the short sale. However, the lender does not have to respond at all.

Short sales can be a good way to buy if you're not on a particular time-frame. A lot of buyers say they are not in a hurry, but you can't make plans when you have no idea when or if your offer will be considered, and you may miss out on other opportunities in the meantime. Also most lenders will only lock a rate for 30 or 60 days; rates could change by the time you get an answer.

Also, keep in mind that often when a seller has to sell for less than they owe, there's a strong possibility that they've not been able to afford to properly maintain the house or they may not have cared. So, you may "save" a lot, but it could end up costing a lot more than you think.

Short sales can be good for investors, but may not be so great for someone looking for a home to live in.

Hope that helps. Marilyn
0 votes Thank Flag Link Wed Mar 4, 2009
Dear Cindy:
A short sale process, while requiring a LOT of patience, is not for the faint of heart. Much better to deal with an agent who has a team who is skilled in negotiating these things. The first thing to find out is what the seller owes on a property. Doing a title search will clear this up, because many times a seller will have a Home Equity loan on a property also.
Good luck,
0 votes Thank Flag Link Wed Mar 4, 2009
Hi Cindy,

Michael is correct, but I just wanted to elaborate a little for you...

The home at 22 Laurel Circle is currently listed at $749K which is $200K less than the current owners paid for it in 2003. While we do not know what the current owners owe for the home, we do know that they need to sell it for LESS THAN THE OWE....this is where the term "SHORT SALE" comes in.

Since it is the lender that is being "shorted," they have final approval on all offers. The lenders are requiring borrowers to provide detailed personal and financial information and they are receiving an average of 16,000 short sale packages A DAY!!!! That is why the approval process is so long.

If the listing agent on the property your are inquiring about requests 90 days for approval, that is (in my professional opinion) a QUICK turn around.

If you are in no hurry to hear a response, and have the patients of a saint, you just might get a heck of a deal! I'm glad to answer any more questions you may have!

Good luck!

0 votes Thank Flag Link Wed Mar 4, 2009
It means that the holder of the mortgage can take up to 90 days to decide yes or no to your offer and during that time can consider any other offers that come in. If you are considering buying a short sale you MUST be very patient. it is a very drawn out process.
0 votes Thank Flag Link Tue Mar 3, 2009
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