What Exactly Is A Short Sale?

Published by peter | Filed under Buyer / Seller Tips, Market Trends

I thought I would review exactly what a short sale is and why they seem to be written about so much lately.In real estate lately, we are running into frustrated homeowners who owe more on their home than the home is worth. If they have to sell now, then they either need to bring money to closing (in many cases, a lot of money) or they need to get permission from the lender to sell the home and fall “short” of paying off the loan. Most likely, the lender will accept a note, unsecured, in order to release the home.So basically, when you hear or read about a real estate short sale, just know that this occurs when a home gets sold and the proceeds from the sale “fall short” of what the property owners owes on the mortgage(s) on the home.

How Can A Home Be A Pre-Approved Short Sale?

Generally speaking, there is no such thing as a pre-approved short sale. Banks are still telling us they will not give a “blanket approval” to anything short of full satisfaction, but “submit all offers.” They will evaluate the offers and then counter or accept one.But there are instances when a bank has accepted an offer and then the deal with the buyer falls through. In essence, the home owner now knows of a price that the bank was willing to accept in the past and therefore is likely to accept again in the future. But is this price guaranteed? I think not.

Tampa Bay Short Sale Expert Saves You Money

Anybody with a real estate license can help you buy or sell a home, whether it is a short sale or not. But that does not mean they know what they are doing. The process of negotiating a short sale takes time and experience, and I can tell you there is a world of difference between a good real estate agent and a great short-sale agent.Somebody who can demonstrate to you that they have handled 20+ short sales will definitely have the level of experience that will save you money. My best advice is to take the time to interview your real estate company before you get into the process of buying a home in Tampa Bay. Make sure the company and the agent have the experience and the network that will equate to money saved for you in your next home purchase.