This question is one that many buyers out there are contemplating at this very moment. Short sales are not a sure thing when it comes to getting ratified and going to closing. The bank is in control on the price and condition and settlement date. For these reasons many buyers avoid short sales. Many buyers cannot remain flexible and up in the air on the settlement date. They must have a specific timeline to follow and be able to rely on the dates. The short sale is not for this buyer.
Yet, if a seller is short selling for the right reasons and under the right conditions, there is no reason why buyers should not consider the short sale home versus a regular sale provided they have the flexibility to roll the dice and take their chances should the property not close in a timely manner or not at all.
The seller should be in a position of having to sell. Foreclosure must be imminent to the seller or they should not be short selling.
The seller must also have a particular hardship that is placing them in the short sale position. This could be job loss, divorce, health issues and so forth. On top of being underwater (they owe more than the property is worth), they must be able to prove that they are financially unable to pay off their mortgage with other assets. If all these reasons apply to the seller, there is every reason to believe that the sale will be successful.
Each bank is different on how they deal with the short sale process. And of course, more than one loan on the property complicates the situation a bit more.
With 30% of all real estate transactions being short sales, it is worth considering these properties as possibilities.
If you'd like to make the most of your real estate transactions, call me today, I will treat your transaction as if it were my own....
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