In short sales, lenders accept a sales price below what they’re owed. For a bank, that’s often cheaper than foreclosing and reselling the house in an unstable market. Typically, sellers in short sale situations are behind on payments and owe way more than the house is worth. Selling short is a way to move on with their lives—minus the more serious credit damage of foreclosure.
It all means that any buyer serious about getting a house in 2010 is likely to reckon with them during the search. Thousands of buyers have scored fabulous deals with short sales. Thousands of others have learned the ropes the hard way.
One of the frustrating things about the short sale, is that the buyer has very little control over how the sale will happen or how long it will take. It’s a time when a home buyers most needs an expert on his or her side – a time when you need a buyers only real estate agent.
Submitted by Minneapolis home buyer agent, Mary Rugani.