A person who is looking for a home to purchase may notice that some are listed as short sales. This doesn’t mean that the sale is going to happen quickly. In fact, it usually means the exact opposite.
In real estate, a short sale is a home that is being offered for less than the current homeowner owes on the mortgage. Because the mortgage company will have to take a loss on the sale of the house that company must approve the short sale.
What the short sale process looks like
Once your offer is submitted, the seller will have to decide if they are going to accept the offer. If they do, they submit the offer and other information to the current mortgage company for approval.
Bank processing can take months in a short sale. While it could be faster, it’s best to plan for a long wait. Banks are in the business of making money. If the person who reviews the short sale offer thinks the bank will recover more money by foreclosing on the property, they may reject the short sale package.
Anyone who is considering a short sale should understand exactly what it could mean for them. These deals are often complex, so you should be prepared. Working with a lawyer who is familiar with this type of real estate transaction may reduce your stress while you are mapping out your future.