What Is A Short-Sale?
March 11th, 2008 Categories: Buying, Keller Williams
We hear about the foreclosure rates going up, and more and more people in financial trouble in this “weakened” economy. So with all of the chatter on foreclosure processes, it begs the question, what’s a short sale? And how is it different from a foreclosure?
A short sale is the “preforeclosure” sale of a property.When the homeowners run into financial trouble, it may be in both their, and the banks’ best interest to sell the property this way, rather than waiting to put it on the market as a foreclosure. A short sale will often allow the property to be sold for less than the remaining balance owed to the bank - it will save the bank money on holding/fixing the property as a foreclosure, and will hopefully be sold faster, paying the bank “quickly.”
–But beware!! Much like foreclosures, where the banks can take their sweet time in responding to your offer, short sales are also up to the discretion of the lender! They can take upwards of a month to respond! It may be a viable option for investors with time and money to spare, but the process is long and complicated!! The properties are sold “as-is” and without a warranty!
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