MEETING YOUR REAL ESTATE NEEDS
What is a Short Sale?
By definition, a real estate short sale takes place when a property is sold for less money than is owed on the mortgage. A lot of crtiticsm is directed toward the pain and extensive time it takes to complete a short sale. This has been a problem for many years and, in reality, it is the best known procedure for bringing property values down, in an inflated market, to what we are experiencing as true market value in this year (2012) and possibly longer.
We have experienced working, with success in the short sale market , for some transactions, as long as ten years. Our greatest hope is that the improvements in this procedure will continue shortening the length of time to complete a transaction. Banks such as Bank of America, Wells Fargo, US Bank and others have made significant improvements in tbeir short sale procedures to such an extent that, in some cases the normal real estate transaction could take longer than some short sales, because of the length of time taken by the buyer's bank. It isn't surprising, with the greater research required by the bank's underwriter in order to assure proper market value during this time in history.
The significant problem is understanding the difference between the short sale and foreclosure sale and what is required to complete the transaction. In a short sale, the owner remains in ownership. Until the owner is in default or signs off all responsibility for the property, the sale is not complete. The owner may choose to return the property to the bank (known as a deed in lieu of) or the bank may choose to foreclose after multiple failed short sales.
It is important that your investigation include legal advice and to work with licensed Realtors, who have specialized in this rather complex field.
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