The basics of short sales

When owners can no longer afford to keep making mortgage payments, a short sale is an alternative they can take to bankruptcy or foreclosure proceedings. A short sale is when a seller's lender is accepting a discounted payoff to release their existing mortgage. This means the lender is accepting less than the total amount due on the property.

When it comes to short sales buyers, sellers and lenders should proceed with caution.

First, not all lenders will accept shot sales of discounted payoffs. This is especially the case if it would be a wiser financial decision to foreclose. Overall, for lenders a short sale in the mortgage world amounts to an accommodation on their part in hopes of avoiding or mitigating an impending loss. The lender will consider many factors when deciding if a short sale is fitting including determining whether the seller is deserving of a break, due to financial hardship caused by unforeseen circumstances such as layoffs, divorce or illness and determining whether it would be cheaper to simply repossess the house, make any necessary repairs and sell it through a real estate agent.

In addition to the obstacles of lenders, not all sellers or all properties qualify for short sales.

This is also why buyers should proceed with caution.

In general, buyers usually pursue short sales to get a good deal. Prices of short sale homes often seem too good to be true for buyers and the process of buying a short sale home is often long and complicated. That is why it is important to enlist the help of a real estate agent. It's not as simple as you may believe, and very few short sale homes close in 30 days or less.

In fact, in some real estate markets fewer than one in 10 short sales close. Just because a property is listed as a short sale doesn't' mean that it's really for sale because the terms of the sale are subject to the lenders approval. Also, it doesn't mean that the property will sell at the advertised price or that the lender will even accept your offer, even if the seller does.

If you are considering buying or selling a short sale home in the San Diego area, real estate agent Myles Weisman can help you figure the ins and outs of the process.

A short sale listing featured on his website www.homesforsaleinsandiego.com is a three bedroom, two bathroom home located in west Rancho Penasquitos, California. It features a private courtyard, a remodeled kitchen and master bathroom, a new roof and a sunroom.

If you're interested in buying this short sale home contact Myles today.

About the Author:


Myles Weisman of RE/MAX and his Team are consistently providing the highest quality services in San Diego County real estate industry for many years. Our client's needs always come first! We will strive to always provide value far in excess of our client's expectations. There are all kinds of homes in San Diego for sale and we will help you getting a home of your choice.