Charleston area homes, Buyers Broker, BuyersAgent, Josephine Traina Gleason

SHORT SALES, FORECLOSURES , UNREALESTATE, OH MY!

Short sales, foreclosures, unrealestate, oh my!

Are you wondering why it takes so long to get short sales approved? ...as much as 90 days to 9 months to close a short sale. The real reasons may be very different from what you might believe.

It would seem when prices are down and millions of homeowners owe more than their home is worth that it is in everyone's best interest to approve a short sale. All the more so when Mortgage Bankers Association statistics show that a foreclosure costs the lender 30 percent more than a short sale.

As any agent or consumer who has tried to close a short sale offer will tell you, closing a short sale is usually a very long and complex process.

Some important factors to note:

An agent may put a very low price on a short sale to: generate sales leads, phone calls from buyers and as a way to build their potential customer base.

In reality, those very low prices HAVE NOT been approved by the lender. So, when you call on that listing with the very low price, the agent will tell you to write up an offer. That offer can come back as much as $30 to $40000 dollars above the listing price.

CAVEAT EMPTOR - Let the buyer beware. When you are involved in short sales,foreclosures, be very careful when making offers. The term "fraught with peril" holds true for these types of real estate transactions.

A short sale is a negotiation with the lender ....this occurs before a property is foreclosed on. The bank is deciding on what amount they will take before placing the property in to foreclosure.
The ramifications for the sellers is very clear. If their home goes in to foreclosure, their credit and ability to purchase in the future will be greatly affected.

If you are interested in short sales, foreclosures, as is, properties, make sure you have a REALTOR who is looking out for your interests, before you buy!

Posted By - Josephine Traina Gleason - 04/24/2010

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