Short Sales Should be named Long Sales

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If you have traveled down the path of trying to buy a short sale process you know it can be a lengthy and frustrating endeavor.  Although there can be price benefits to purchasing a short sale property, it may or may not be worth the hassle.  A short sale is a property being sold for less than the current mortgage balances.  There may be more than 1 lender involved since many homeowners took advantage of (2nd) home equity lines of credit etc.  The lenders involved are being “shorted” the payoff due on the property.  Any offer is subject to 3rd party approval (the lenders being the 3rd party).  Depending on the lender and how backed up they are it could be weeks to months before they even respond to a offer.  This leaves the buyer in limbo for an undetermined amount of time.  Interestingly, many properties I have seen that were offered as short sales and were never sold and eventually foreclosed on, end up back on the market priced considerably less as foreclosures than they were as short sales.  A wise buyer might wait if there is plenty of like kind inventory.

August 31, 2009 by ROBERTSV : No Comments

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