If you have been shopping for a home recently or been checking out available homes for sale in your area you may have seen that many of these properties are being advertised as a “Short Sale”.
But what does that really mean?
Well, basically it means that the seller of the property owes the bank more than the home is worth. This can be a common scenario in cases where the seller purchased the home in the last few years or they refinanced the home and pulled cash out the the property that they no longer have available.
Here are some important points to consider if you are considering purchasing a “short sale”
- The seller has to qualify for the short sale. They have to be able to demonstrate to the bank that they can no longer afford the house AND have no way of making up the difference in the amount owed. Not all “short sales” get approved.
- It can take any where from a few months to over 9 months to get bank approval for the sale. You need to be patient and prepared to wait. Progress can be slow and frustrating.
- Does the listing agent have all the proper documentation from the seller to get the approval. The bank will not move forward until ALL the necessary documents are in place.
- Is the listing agent using a short sale negotiator? This is a service which does the follow up with the bank and helps move the process forward. You just want to make sure that the calls to the bank are being made and someone is actually working on the transaction.
- Does the seller have any financial reserves in case the bank asks for extra costs to be paid. You want to see if the seller has some cash so that there are no last minute problems.
There are many more points to consider and a good real estate agent who works with short sales can help you through the process. Give me a call if you have more questions, 619-981-3243. If you are in San Diego, we have a short sale package that can help with the decision making process and is available by email. Professional San Diego Short Sale.
San Diego Home Collection 