Short Sales are prevalent in the Twin Cities and could be an option for you Buying or Selling a home. Read up on some of the main points to become better educated on todays market.
A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property's loan.[1] It often occurs when aborrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the borrower. Both parties consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the borrowers. This agreement, however, does not necessarily release the borrower from the obligation to pay the remaining balance of the loan, known as the deficiency.(wikipedia)
As a Buyer:
-potential to get a better price on a home
-longer waiting period, 3-9 month process after offer is presented to the bank
-occupied short sales may have less deferred maintenance on home
As a Seller:
-possibility to avoid foreclosure
-minimize damage to credit
-faster recovery to qualify for a new mortgage, lower interest & insurance rates
Short Sales can be a complicated process that can work in your favor. If this is an option for you there are many other details to go over that can affect the purchase or sale. Let us know if you would like more information or need our help with a Short Sale.
