What is a short sale?

For owners who can no longer afford to keep mortgage payments current, there are alternatives to bankruptcy or foreclosure proceedings. One of those options is called a "short sale." When lenders agree to do a short sale in real estate, it means the lender is accepting less than the total amount due. Most lenders incur legal and carrying costs in the foreclosure process and many times will settle for less than what is owed for the property.   This process also called ‘friendly foreclosure’, allows the bank to satisfy some of the debt owed and the seller to walk away from the property with less credit implications.  

How can a short sale benefit you

 

Typically, homes involved in a short sale can be had for much less than the market price.   For this savings, there is quite a bit of additional work that you and your real estate professional will need to do.  First, you need to make sure that you sure of the price you would like to offer.   All short sales and REOs (Real Estate Owned) properties have a ‘sold as is’ condition.   That means if there is a crack in the home’s foundation or a pest infestation that you didn’t see on your walkthrough or inspection, you have no recourse.   Basically, the seller will not give any guarantees on the property.   If the roof has problems, you will have to discover it or pay for it down the road.   That is why having a good real estate agent is key. 


In addition to this homework, there is additional paperwork that is required by the process.  If there are a first and second mortgage or a home equity line of credit, your real estate agent will have to talk to more than one lender to get approval for a short sale. When submitting your offer, response times vary from lender to lender. It can take two weeks or as long as 60 days to receive an approval of a short sale from a lender. That’s why it’s critical that buyers and their representative understand and accept that time frame before they make an offer.

Our Services

Lucky Realty Group specializes in Short Sales. 

We have represented buyers and sellers in this process.

 

For Sellers, we have streamlined the process with lenders and know how to take the worry out of this process.   We help you effectively price your property to attract a buyer who is patient and has the resources to purchase your home.   Once an offer is submitted, we’ll carefully guide your sale to closing.

 

 For Buyers, we can help you determine a market value for the property and submit an offer.  Our database of inspectors and contractors will help you complete the necessary up-front work to ensure all the home’s system work effectively.   Knowing the steps involved in short sales, we can ensure that your offer is accepted and all closing steps are followed.