FROM THE SELLERS STANDPOINT

     A Short Sale situation arises when the sales price of a property does not cover or pay off the existing loans on the property. There may also be secondary liens, delinquent property taxes, various association dues and fees, etc…  Also not included would be any closing costs associated  with the transaction.

     There are two ways to see a Short Sale to completion on the Sellers end.  The first choice for the Seller is to come to closing with funds from other sources to cover the balance of the loan.   The second option is for the Lender to forgive the difference between the net at closing and the loan amount.  The Lender may forgive the portion of this amount, and have the Seller sign a promissory note to pay any difference. 

FROM THE BUYERS STANDPOINT

     There are many ‘good deals’ on the current market in regards to Short Sale properties.  A good majority of these homes are still Owner occupied; therefore they still have pride in their home and work to keep it it in move in condition. 

     A Buyer for a Short Sale must be prepared to wait for an approval of an agreed upon contract from the Seller’s Lender.  Once the Seller signs the contract, it is sent to the Lender for approval.  Each institution has it’s own guidelines, therefore there is no set time that the Buyer can expect a ‘yes’ or ‘no’ on the agreement.  If all of the paperwork is completed properly by the Agents involved, it might help to move the process along. 

     Hopefully, all of these processes can be streamlined in the near future, as this would help all Buyers and Sellers and allow us to get a little closer to the normal world of Real Estate.