I am sure that many of you are seeing a lot of short sales out there right now.  Let me give you a bit of a better understanding as to what a short sale is.  A short sale basically is what a seller does when he/she, they are having a hard time making payments.  They have to “prove” to the bank that they are unable to make the payments anymore.  It is to the bank’s advantage to take the sale of the house a bit short of what is owned, rather than to undergo the hassles of a foreclosure. 

Short sales can be fabulous deals for buyers, and they will hurt the seller’s credit by 80-160 FICO points.  It is better than up to 300 FICO points for a foreclosure.  However, both have ramifications on the seller’s credit.  The other factor that a buyer needs to remember is the fact that just because a seller agrees on a price that a buyer has given, that price must also be agreed upon by the bank.  Buyers can wait and wait and have the bank say that they won’t do the deal.  It seems crazy, but it is true.  I have recently encountered a couple that I am representing in a short sale and it has been 3 months and we have still not heard back from the bank.  They have so many short sales right now and foreclosures and truly are bogged down with many of the negotiators having 500 files on their desks.  They simply cannot get to everything because the keep getting more and more short sales every day!

If you happen to have a seller that is working with an agent that really has short sale experience, you may be able to really get a great deal if you have a lot of time and patience.  Remember, the bank can say no, so don’t get discouraged.  You can get a great deal, but just know the facts going into a short sale.  Good luck to you!  If you have any questions, you may give me a call at 951-204-1864 or please visit my web site www.calljoan4homes.com