real estate, short sales, seller, buyer
What is a short sale? A short sale is when a lender settles for a short payoff less than what is owed on a secured note. In some circumstances a bank may negotiate with you a cash settlement to cooperate with them to do a short sale instead of a foreclosure. The banks are concerned with losses and minimizing the cost in a foreclosure situation. And in a short sale vs. a foreclosure it costs the bank less money to do a short sale instead of a foreclosure. A short sale must be facillated by a licensed REALTOR and some banks prefer agents that specialize in short sales or have training in that area. Who determines the list price? The list price is usually determined by the bank or at least they indicate what they would like to get for the property. The bank usually does a BPO and that will help the bank determine the fair market price. How long is the process? The short sale process can be a lengthy one however banks now are trying to streamline the process to shorten up the time frame. In a short sale you still follow all guidelines and sell or purchase the property same way the only difference is that the bank has to approve the shortened amount to sell to new owner .