What Is a Short Sale and When Do You Need One?
There are lots of different ways to buy and sell real estate. Everyone will have a different method and philosophy! In this article, we will explore what a short sale entails, and how to tell if this is the right avenue for you to take when selling your next piece of real estate.
Short sales are usually recommended for sellers that need to catch up on their payments or who have negative equity. This can be for a number of different reasons, which we will explore below. The most common are financial hardship, divorce, new career opportunities, and familial challenges. Let’s dive into the specifics!
As we mentioned above, financial hardship is one of the main reasons why a seller might choose to undergo a short sale. If budgeting has been tough due to rising costs, job loss, or other external factors, paying for mortgages and bills can bring on financial hardship. in order to save yourself from going into debt or continuing a path of financial strain, your real estate agent may recommend a short sale
A short sale may also be encouraged if all other options have been exhausted. Financial hardship is the root of the issue, and every measure has been taken to recover, a short sale might be the best option. The same goes for a home that has.
Due to the nature of a short sale with homeowners being low on funds, the process of getting the sale approved by your bank can be very long and tedious. On average, a short sale can take about 12 months to get approved, and there is no guarantee that the offer accepted by the seller will be accepted by the bank representative.
Some examples of why a short sale might be rejected include low offers, hidden assets from the seller, and an incomplete loss mitigation package.
The best thing you can do if you are in need of a short sale is work with the real estate agent! Our professionals are trained and experienced to help guide you through this process and make sure that all of your goals are achieved.
We hope this article helped you better understand the key components that go into a short sale. If you are interested in buying or selling property, be sure to contact our professionals at VSells&Associates to help you navigate every step of the process.
Whether you are buying or selling, we at VSells & Associates make it our mission to guide our clients through the whole process. We make moving simple, straightforward, and as stress-free as possible.