What is a short sale?
There is a lot of misconception I am finding about short sale homes. A short sale (also called pre-foreclosure) can happen when a homeowner is unable to keep up with their current mortgage due to some type of financial distress. Distress can happen to many homeowners due to job loss, divorce, death, relocation, rising interest rate on their loan, etc. A short sale is where the bank agrees to allow the homeowner to sell their property for less than the current mortgage amount due.
A short sale is not just simply "We owe more on our home than the market will allow" A true short sale must involve a good reason for the current mortgage company to take a loss.
Finding short sale homes can take a lot of research and many homeowners are not even aware the option to sell prior to foreclosure is available. A Realtor can help you navigate through the process of finding and purchasing this type of home and most of mortgage companies require sellers to involve a Realtor in the process as well. If you are considering this type of purchase or considering selling your home as a short sale, you may want to contact an attorney and also make sure your agent has extensive knowledge and training in the short sale process.
Purchasers should be aware up front that buying a short sale home can be a longer process. It can take anywhere from 2 weeks to 3 months to get a short sale offer approved so the purchaser definitely needs to have time to wait for this process to take place. Short Sale homes may not be your best option if you need to move in 60 days or less.
There is good news though! If you are a seller in a short sale situation-your credit won't be affected as badly as it is by a foreclosure. If you are a purchaser and you have time to navigate through the short sale process-you will get a really good buy!
There is more information on how short sales work to be found at my website
http://www.perrysburg-homes.com/
