Short Sales

A short sale is a scenario where the mortgage company/s and or lien holder/s on a property have approved the release of their liens or mortgage/s for amounts less than what is owed and is granted typically as an alternative to foreclosure for the seller. For a buyer, this is a great opportunity to purchase that property for an attractive price. For this reason, an appropriate buyer for a short sale is someone who does all of their research up front prior to committing to an offer (i.e. financing approvals, all inspections, town or city research.)

For a seller, a short sale can be an attractive alternative to foreclosure, “Deed in Lieu”, or a loan modification. Embarking on either selling or buying a property through a short sale process is not for the faint of heart. It is not like buying or selling a typical property. The rules are completely different.

A Few Key Components to Buying a Short Sale Property

• The Contract is subject to lien holder/s or the bank/s approval for a short sale; not just the seller's approval.


• The seller often times encourages the buyer to inspect property before submitting for bank approval.


• Will the seller have to pay taxes or pay back on the amount forgiven for the liens?


• The turn around time it takes for the seller to hear back from the lender /s may be quite lengthy.


• The lien holders will frequently send out their own appraisers to evaluate the value of the property before allowing a short sale.


• 3rd party intermediaries are often hired to facilitate the short sale process.

These are just a few of the factors that need to be considered in the short sale process. Please Contact Me for more information.