I was counseling a buyer client recently who was relocating for a job and he had ninety days to be moved into a new place. He was keenly interested in the prospect of getting a bargain if he purchased a single family home which may be a "short sale". I didn't want to be a pessimist, but I told him we needed to have a discussion about the " Facts of Life" of a short sale.
First off, a " short sale" isn't necessarily a quick sale. 90 days might seem like a long time, but in the life cycle of a short sale, it is not. A short sale is a pre-forclosure transaction and it involves many layers of decisions and actions by people who are not usually communicating with each other in a timely oe efficient fashion.
A short sale occurs when the mortgage debt on a property exceeds the value of the property and the lender or lenders agree to accept less than the full amount of the debt. Even if a homeowner is willing to accept a certain price which is less than the amount of the debt, any offer is subject the lender's final approval. If the is more than one lein holder, the process is even more complicated.
The most important prerequisites for a buyer for a successful short sale is patience and flexibility. The lender is in control and the buyer is not.
For details and tips for purchasing a short sale: