In these tough economic times many owners find that the market value is much less than the amount they owe on the property. When sellers find themselves in this position it may be possible for them to negotiate a “Short Sale” with the bank. The “Short Sale” equals the loan amount less the sales price of the property plus closing costs and fees. Many times this is the last chance for the seller to get out from under their loan before the property goes into foreclosure.
When a Buyer writes on offer on a “Short Sale” property the seller decides whether they accept the price and can live with the short sale amount. Then the seller must negotiate with the Bank to determine how the short sale balance will be addressed. Sometimes the bank will forgive the balance or agree to an unsecured loan for the balance. The Seller retains the right to continue to market the property until the contract is accepted by the bank. Both Buyer and Seller may terminate the contract until bank acceptance. Typically the buyer is given the appropriate amount of time to inspect the home and obtain financing once the bank accepts the short sale contract.
The short sale process can be time consuming and very arduous but we have seen some incredible deals for Patient Buyers. New for 2011, in addition to linking to a list ofBank Owned properties in the Winter Park, Granby and Grand Lake areas we will now post a list of Short Sales Properties. Both are excellent opportunities for qualified buyers to get a great deal!