When the real estate market is a seller's market - you probably expect your house to sell very quickly, and hopefully with a LOT of offers. In fact, maybe you want to have an all out bidding war
Tales Of A Short Sale
Dated: May 3 2016
Basically, a short sale is a house that is upside down on their loan. They owe more than what the house is worth. They are in some sort of hardship where they’re at least 90 days past due on their house and can’t make the mortgage payments. (Perhaps divorce, lost job, death in family, etc.) Instead of going to foreclosure, they try to work out a deal with the bank and put the house up for sale. But, since they basically don’t have any money – the house is likely in a distressed condition. AND, if they’re upset about what has happened, it’s possible they’ll take that emotion out on the house (holes in walls, not taking care of property, etc.).
So, they put it up for sale and have an aggressive pricing strategy to get an offer quick. Then they submit the offer with their hardship letter to the bank that holds the mortgage. That letter explains why they can’t pay the mortgage and requests the bank’s approval to sell the house for less than what they owe. AND, (this is the kicker) they ask the bank to write off the difference of what they owe. AND!!! They ask the bank to pay for the costs associated with selling (about 10% of the sales price).
This is where it sits on someone’s desk FOREVER because it’s just not anyone’s priority to lose money on a sale. Banks in today’s economy would likely rather foreclose, make minor repairs and recoup their costs on the market. So, the short sale process is not a priority and it takes a very long time to get a response from the bank. If they’re in agreement to short sale it, they’ll send someone out to appraise the property on their behalf – to counter your offer. The entire process is quite time consuming. Often times it takes several months for the bank to even respond and by then the house is getting to be in bad condition and other opportunities are being missed on the market.
If you have time AND patience, you might be able to get a good deal on a short sale, but it’s not going to be easy.
In the competitive Des Moines market, Heather Wright combines client-focused service, innovative marketing techniques, and a decade of experience to make sure that your buying or selling experience is....