In basic terms, a “short sale” is a property the owner has to sell, but the value of the house is less than the mortgage balance. The seller can’t unload this home without bringing in cash to pay off the lender. The alternative is a short sale.
When was the last time there was a short sale?
One of those options is a short sale. There were a lot of short sales from 2006 to 2012, but they are not as prevalent today. In recent years, even sellers who are not delinquent might qualify for a short sale, which has opened many more short sale doors.
When does a lender approve a short sale?
When a lender approves a short sale, it’s agreeing to sell the property for less than the outstanding mortgage balance against it. There’s something in this for the lender when foreclosure seems inevitable.
Who is the author of the short sale Savior?
In addition to her writing for The Balance, Elizabeth is the author ” The Short Sale Savior: How to Turn Your Upside Down Mortgage Right Side Up” and is the co-owner and Weintraub & Wallace Realtors in Sacramento. The short sale process can be confusing to some home buyers and sellers.
What Is A Short-Sale Home? A short sale of a home is when a home sells for less than the amount needed to pay off the mortgage. In a short sale, the lender agrees to accept the lower sales price as payment in full for the remaining mortgage balance.
Do you earn a commission on a short sale?
The buyer’s agent. Short sales aren’t high on the list of a buyer’s agent’s favorite transactions. Buyer’s agents generally earn a lower commission on short sales; the deals take longer to close and sometimes they don’t close at all. The listing verbiage needs to assure the buyer’s agent it’s worth the time invested.
What’s the best way to price a short sale?
Pricing a short sale correctly involves choreographing a delicate dance between bringing in an offer and getting the bank to buy into that offer. It’s very similar to the way agents price any other home, with a twist to account for market conditions.
How long does it take for a short sale to close?
The short sale bank. Because short sales can take a minimum of three months to close from listing inception, the price should be based on pending sales, which will become the comparable sales at closing.
