Short Sales

What is a short sale?
A short sale is when a bank or mortgage lender agrees to discount a loan balance due to an economic hardship on the part of the mortgagor. The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender in full satisfaction of the debt. In such instances, the lender would have the right to approve or disapprove of a proposed sale.

Why would a lender allow a short sale?
A short sale typically is executed to prevent a home foreclosure. Often a bank will choose to allow a short sale if they believe that it will result in a smaller financial loss than foreclosing. For the home owner, the advantages include avoidance of having a foreclosure on their credit history. Additionally, a short sale is typically faster and less expensive than a foreclosure.

What is the first step in buying a short sale?
You MUST be pre-approved and be VERY confident that you will be able to obtain financing or have the liquid assets needed to make the purchase.  Lenders will usually not accept an offer contingent upon the buyer obtaining financing.  We have preferred lenders who are familiar with this process if you are interested.

How can I purchase a short sale?
Contact us and get placed on our list of potential buyers and as new short sales become available we will contact you with details of the property.