The process of purchasing a property that is in a “short sale” process can be time consuming, frustrating and exasperating. So the question is; Are Short Sales Worth the Hassle? I have worked on quite a few short sales and they can be a real pain to execute, but I think short sales are also an opportunity for home buyers and investors alike, if you are not on a deadline.
Short sales opportunities are best suited for home buyers who do not have to move at a particular time. Hopefully, you can wait out all the red-tape the lender who is involved will need to get through to green light the transaction. For investors, short sales continue to present great opportunities for updating the properties and re-selling them at a profit.
So What Exactly is a Short Sale?
Its when a home owner owes more money on the property than its current value. Typically, the home owner has fallen behind on mortgage payments, or taken out a second mortgage or home equity line and they now owe more that the house is worth. They can’t afford to sell! Its actually quite sad and the mortgage lenders hate to have to displace people from their homes. That’s why it is such a long process. A foreclosure is the next step if the homeowner and lender do not come to agreement on the short sale process.
The lender needs to agree to a sale price in order for this to work. They will take the sale proceeds which will be less than the amount owed and forgive the remaining balance. The reason they do this is it is because they are not in the real estate business and do not want o end up owning the home.
If you are thinking of investing or buying a short sale here is a list of homes currently on the market in the short sale process.