*A short sale occurs when the net proceeds from the sale of a home are insufficient to pay off the 1st lien.
Short-Sales is a term that is being used more and more in real estate these days. For the seller it is away to avoid foreclosure, if they qualify. But, for the buyer these can be risky! Why? (This is my biggest question!) In my opinion these are the three biggest risks the buyer takes when becoming involved in a short sale:
*You have to wait for an answer on your offer for 2 months sometimes. No short-sale is the same, and while you are waiting other buyers can usually put in other offers, that might be more attractive than yours!
*In a typical transaction there is the Agents, the Seller, the Buyer and the Buyer’s Lender. IN A SHORT SALE, THERE ARE 11 DIFFERENT PLAYERS INVOLVED. All eleven have a say in YOUR offer that you presented to the seller’s agent.
*The buyer is buying the home AS IS. That means the buyer could be buying the home’s problems too!
There are some good short sale homes out there. Just make sure you know the risks. Always feel free to call me if you have any questions.