So what is a Short Sale and why are you hearing so much about them? Buyers pursue short sales to get a good deal. So when we send you a listing with a price for a home that looks too good to be true, it usually means that the home is either a short sale or a foreclosure. You might want to think twice about making an offer on a pre-foreclosure, short sale or foreclosure home. It’s not as simple as you may believe, and we’re seeing some offers take up to 9 months to close.
In fact on average many of my Louisville home buyers have waited 4 to 6 months to close on a short sale, sometimes longer We’re certified to handle short sales through CDPE (Certified Distressed Property Experts). We know there are ways to speed up a short sale by having complete packages ready to go to the bank on our listings. But when we represent a buyer who wants to buy a short sale we don’t represent, we’re at the mercy of the selling agents experience (or in many cases lack of it).
A short sale actually means the seller’s lender is willing to accept a discounted payoff to release an existing mortgage. The problem is that just because a property is listed as a short sale doesn’t mean the lender will accept your offer, even if the seller accepts it.
The main problem is the seller has to have a hardship before a bank will accept a short sale. It may be because of a loss of job, medical problem, divorce etc. All short sales are sold AS IS which means neither the bank or the seller will make repairs. Many of the homes we see are in need of a lot of repairs because the seller doesn’t have the money to repair the problems. So the home sits in trouble until someone comes along and buys it.
Another problem if the offer on the property from the buyer is too low, even thought the seller may accept it, the many may not. So it’s a real crap shoot. For 1st time buyers looking for the $8000 tax credit, a short sale is not the way to go.
For more info on selling your home head to www.weselllouisville.com
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