What is a Short Sale?
Posted by Kevin Knox on Friday, November 19th, 2010 at 9:31am.At this point most everyone has heard the term "short sale". We see it in real estate listings, on the internet, and maybe from your bank. So what does a short sale mean and how will it effect you when looking for a home?
Here is the definition of a short sale; "A short sale is the sale of real estate in which the sale proceeds fall short of the balance owed on the property's loan. It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the borrower."The short sale option has grown quite a lot in the last few years because many have found themselves in financial problems. This process for the buyer and the lender can be very tedious and if you get involved as a buyer don't be in a hurry. The frustrating part for a buyer looking at the short sale is that the listing price may or may not actually be the lender approved price. A lot of times the price advertised is the bottom line that the bank gave them. There is a lot of paper work and communication back and forth between all parties involved. The average short sale can take from 2-4 months to resolve and the bank still holds the right to a deficiency judgement. This is where the bank still holds you accountable for the remaining funds owed on the property sold. The credit repercussions can be from 2-4 years for the seller. In some cases this can also effect the new owner of the property. This tends to give new meaning to the term buyer beware. I don't want to scare you away from short sales but 9 times out of 10 there is more to the story with a short sale and its never quick and easy. Having representation as a buyer that knows the ins and outs of this process is a must. It can cost you thousands and waste months of your life if you don't know what your doing. The experience at the Hirsh Real Estate Specialists can help you understand and walk you through this process. We are an Atlanta based business with specialists in several different real estate markets throughout the city. My name is Kevin Knox, Realtor, please let me know how I can help.
Kevin Knox - Realtor - 770-846-0907
Email: kevin@hirshrealestate.com
Find the latest listings at: www.hirshrealestate.com
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