| What is a Short Sale? |
A short sale happens when the seller cannot sell the home for as much as they owe their lender.
Short sales are different from lender owned homes, homes in foreclosure or auction homes.
In a short sale the seller is usually still occupying the home. Showings and the selection of the
Realtor listing the home are still in the hands of the seller. However, the big difference is that
when an offer is received all parties start to work with the bank to see if the offer is acceptable to
them. What the seller wants for the property does not matter.
Benefits to the Buyer of a short sale:
Typically the main benefit is price. You are getting a home at a substantial discount compared to
similar homes in the area.
Inspection and negotiation. Unlike an auction or a foreclosure the seller in a short sale
voluntarily listed their home and really does want to sell, so they are usually pretty cooperative.
You will be able to inspect the home and have time to decide if the home is right for you and in
acceptable condition. Typically you will have a full 17 day (standard in CA) period to inspect the
property after your offer is made.
Negatives to the Buyer of a short sale:
The time period for a bank to respond is controlled by them. They may take 2 weeks they may
take months. If you are on a tight schedule or trying to move by a certain date a short sale is not
the way to go for you.
Banks often times continue their foreclosure action even though the home is being negotiated
on. Once they reach the point of no return you could have the house pulled out from under you
and it could go to full foreclosure. Make sure you know if and when the seller received a Notice
of Default. They only have 120 days (in California) from that point to sell the home. While it is
possible that they have negotiated to delay that date you as the buyer MUST know if the seller
has received their Notice of Default.
If you unable to keep paying your mortgage:
Don't ignore your lender. Ask them for help. Faced with many cases these days lenders are
offering to adjust terms, put you in new loan programs or delay payments if you need temporary
relief.
If there is no chance in sight that you will be able to pay these obligations a short sale is
probably your best alternative to make the most of the situation. Click here and learn more about
the options you have to avoid foreclosure.
As always, everyone has different circumstances. It is vitally important that you discuss your
options with your tax and legal advisors. This document is a general overview of the process
and does not substitute for the advice of your attorney or tax preparer.
Short sales are different from lender owned homes, homes in foreclosure or auction homes.
In a short sale the seller is usually still occupying the home. Showings and the selection of the
Realtor listing the home are still in the hands of the seller. However, the big difference is that
when an offer is received all parties start to work with the bank to see if the offer is acceptable to
them. What the seller wants for the property does not matter.
Benefits to the Buyer of a short sale:
Typically the main benefit is price. You are getting a home at a substantial discount compared to
similar homes in the area.
Inspection and negotiation. Unlike an auction or a foreclosure the seller in a short sale
voluntarily listed their home and really does want to sell, so they are usually pretty cooperative.
You will be able to inspect the home and have time to decide if the home is right for you and in
acceptable condition. Typically you will have a full 17 day (standard in CA) period to inspect the
property after your offer is made.
Negatives to the Buyer of a short sale:
The time period for a bank to respond is controlled by them. They may take 2 weeks they may
take months. If you are on a tight schedule or trying to move by a certain date a short sale is not
the way to go for you.
Banks often times continue their foreclosure action even though the home is being negotiated
on. Once they reach the point of no return you could have the house pulled out from under you
and it could go to full foreclosure. Make sure you know if and when the seller received a Notice
of Default. They only have 120 days (in California) from that point to sell the home. While it is
possible that they have negotiated to delay that date you as the buyer MUST know if the seller
has received their Notice of Default.
If you unable to keep paying your mortgage:
Don't ignore your lender. Ask them for help. Faced with many cases these days lenders are
offering to adjust terms, put you in new loan programs or delay payments if you need temporary
relief.
If there is no chance in sight that you will be able to pay these obligations a short sale is
probably your best alternative to make the most of the situation. Click here and learn more about
the options you have to avoid foreclosure.
As always, everyone has different circumstances. It is vitally important that you discuss your
options with your tax and legal advisors. This document is a general overview of the process
and does not substitute for the advice of your attorney or tax preparer.
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| LAURA LAKE |
| 760-464-8138 - Direct 760-601-3099 - Fax Keller Williams Realty 47170 Washington Street La Quinta, CA 92253 |
