What is a short sale? A short sale is when a homeowner owes more on the home than the home is worth and they have asked the lender to satisfy the loan for less than the amount owed.
Often you can get a good deal on a home that is a short sale, but the first thing you need to plan for is time! Traditionally short sales can take 2 to 6 months to close. If you have a deadline in mind for your moving date or if you cannot be flexible a short sale might not be the home for you. Short sales take more time because first you must negotiate with the seller and then the seller must negotiate with the lender. Because of the recent residential market crisis, lenders are often overwhelmed and their response times are often slow.
Before you decide to make an offer on a short sale, it is a good idea to ask the Realtor you are working with for answers to the following questions:
- Has the seller submitted a hardship package to the lender?
- Is the lender local? Has the lender assigned a loss mitigator to the file? Has the lender requested a broker price opinion or appraisal yet? Is there a second mortgage on the home? If so, have they also been contacted?
- Are they accepting multiple offers?
The answers to these questions will give you important information about how far along in the short sale process the property is and how smoothly and quickly your negotiation might go.
The bottom line here is that there are lots of properties to choose from and the interest rates are still at record lows. Now may be your best time to buy! Just remember real estate is traditionally a long term investment. Look for the home that best serves you and your family. You will enjoy the sense of belonging and community, tax advantages and build equity over time. At Prime South Cindy and Georgia are anxious to help you determine if a short sale purchase opportunity is right for you. Call Georgia (850) 510-4286 and Cindy (850)545-8076