Team 1 Realtors

What is a Short Sale?

A short sale occurs when the owner/debtor sells the property for less than the outstanding balance of the loan.  A short sale is a typically a solution to keep a home from being foreclosed on.   Thus the lender is being asked to accept a discounted loan balance due to economic or financial hardship on the part of the owner/debtor.  The lender has the right to accept or decline the short sale, normally basing the decision on the borrower’s finances and the current real estate market.   Normally a short sale is sold “As Is”, meaning that the owner will do no repairs of any kind to the property.   It is important to do all inspections so that you will know if there are any issues with the property that you will not want to undertake. 

It is essential to understand that buying or selling a short sale property is not a “short process time- frame”.   If you are in a hurry to make a purchase then a short sale is not for you.  It can take 60 days or more to receive an answer of acceptance, counter offer or rejection from the lender. 

Though short sales are many times sold at a lower price than other properties in the same area, it is important for your realtor and you to research the market to ensure that you are indeed getting a good deal.

As your real estate Team, we will stay in continuous contact with the selling agent and lender to ensure you are constantly updated with the most current status of the process.