The real estate landscape and consequently, the home-buying experience, are markedly different than they have been in the past.
Today’s home buyers have many different options when it comes to choosing a new home, each with their own set of advantages, disadvantages, risks and rewards.
It’s been called a Tale of Two Markets: One market involves homes being sold by traditional, non-distressed homeowners. The other involves homes being sold before, during, or after the foreclosure process. In this case, a lender, bank or other financial institution is involved (or will be shortly). And frequently, more than one will is involved, as in the case of multiple mortgages.
The short sale, also known as a pre-foreclosure sale, occurs when the underlying lender(s) agree to allow a homeowner to sell the associated property for an amount “short” of what is owed to the lender(s). It does not mean that the timeframe needed to close such a transaction is “short.” In fact, most likely, just the opposite is true. Often, the lender(s) aren’t even aware of the possibility of a short sale until a purchase agreement is submitted to them.
Once alerted to the offer, the lender(s) must go through an extensive process to determine whether the submitted purchase agreement will be acceptable to the associated investors. This process can prove to be quite lengthy and often frustrating for buyers that may not have realistic and clear expectations of the process up front.
Great buys can be had in the short sale arena, but buyers must ask themselves up front if they are really willing and able to wait a long time for a lenders response with no guarantee that they will like the answer when it finally arrives.
Call today if you would like any additional information of the short sale process or would like to explore short sales as a possibility for your next home.
Shawn Korby (651) 442-0829, or visit our website at www.HKhometeam.com