From 2008 till approximately 2015 the real estate and home buying/selling landscape looked drastically different than what we have today. Since those years, there hasn’t been much discussion around the office regarding what short sales, how to buy short sales, and where to search for short sale properties.
In this video, Toby answers those questions and if you’re more inclined to read then continue down the page.
Here is a brief overview of the video:
What is the definition of a Short Sale? A short sale is when a property owner is selling their property for less than what’s been mortgaged, or owed, against it.
Example: If the property has $500,000 owed against it and its being sold for $450,000 the property is considered a short sale.
Related: What is a Short Sale Property
Short Sale Myth #1: A Short Sale has a faster than normal closing timeframe.
Short sales have nothing to do with time frames of purchase as it’s a myth that a short sale is synonymous with being a fast sale. Quite the opposite and we in the industry used to call them long sales.
Why do short sales take a longer time period to close than a traditional sale?
It has to do with the parties involved. When an owner is selling for less than they owe on the property then the owner will need to receive permission from their lienholder. From what we’ve experienced, lienholders are not quick to approve debt forgiveness on the difference between what the owner agreed to repay and the property’s selling price.
Related: How to Buy a Short Sale Property
What if a home owner wants to sell but doesn’t want to impact their credit by selling short?
If an owner can make up the difference, also referred to as bringing cash to close, then the owner doesn’t need the lienholders permission since the loan balance will be satisfied.
Short Sale Myth #2: A Short Sale is a Pre-Foreclosure.
There is no such thing as a pre-foreclosure. A property is either in foreclosure or is not. Zillow will display properties as a pre-foreclosure when that property is listed as a short sale signaling it’s in some sort of distressed state. Furthermore, a short property doesn’t have to be in a distressed situation, meaning behind in mortgage payments.
Where can Short Sale properties be found?
Start on our website. We have webpages build for every city in Snohomish County. Just click their respective link and you see all available short sales in that city.