Fsbo

Q: I am about to put an offer on a short sale property. What is a short sale? What can I expect? Short sales sound very confusing. What am I about to get myself into?
A: A short sale occurs when a homeowner who is unable to pay the monthly mortgage owes more then their house is worth, and in agreement with the lender sells the home. In the past, the only option homeowners had was foreclosure, which ruins credit scores for years to come. With a short sale you sell the home for less then its worth, with permission of the lender.

If you are not in a hurry, and not trying to coordinate a sale of your home to coincide with a purchase, it can be the route to a purchase at a favorable price. If you are in a market of declining prices, you may very well find better deals on the current market.

Expect to wait a long time with out a definite answer. The first thing I do is find out the drop dead date when the house will foreclosure. In my experience the Loss litigator will do nothing until three days before 3D(drop dead date). I would also find out how much money the seller will owe. Again in my experience the more they owe the greater chance they will file bankruptcy to avoid the 1099, however as I have learned it depends who is doing the seller taxes on how much of the 1099 they will pay on. At last check 70 – 90% of short sales fail.

This entry was posted on Thursday, November 15th, 2007 at 6:23 am and is filed under RE Questions. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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