What is a Short Sale?

A “short sale” situation is a property being sold for less than the amount of the outstanding mortgage against the property.¬† The sale does not occur until the lender has done significant due diligence on the seller’s financial situation and has negotiated an agreed upon purchase price with a buyer. We are seeing more and… Read More

Reduced Probability of Closing

Expect at least three months, but could be as long as 12 months, from the date contract is written to an actual closing date.¬†There are no dates guaranteed with a short sale, including a closing date. Most “date specific” areas in a purchase contract must reflect “X days from 3rd party approval”. Majority of short… Read More

Lenders Have the Say

Lenders can change the terms of the sale depending on market conditions, new laws and lender’s own in-house governing guidelines. Lenders are not required to disclose the condition of the property nor the results of any Broker Price Opinion (BPO) that was done on the property. Lenders dictate what commission amounts are acceptable to be… Read More

Title Headaches

Many times distressed properties come with title issues because of the seller’s financial situation resulting in a variety of deficiencies. It is critical that a buyer research and discover all of the outstanding issues impacting a successful transfer of title. A buyer’s closing attorney can order a title search done on the property as well… Read More