Jerry Guy Buyers Agent Blog

Short sale of a house refers to a sale wherein the sale price is less than the balance of the property's mortgage.

This usually happens when the homeowner has not been able to keep up with his mortgage payments.

It can be a decision on the part of the lender that begins the process of putting a property on the market on a short sale basis. If, let's say, a homeowner owes $150,000 on a mortgage and can no longer make his payments, a short sale may be started. Both the homeowner and the lender may reach an agreement and be willing to put the house on the market for less than the $150,000 value of the mortgage.

Now the house is up for short sale. Short-selling typically takes less time and is less expensive than foreclosure proceedings.

Properties that are on the market typically close faster if they are not on a short-sale basis.

Multiple levels of approvals are commonly needed for short sales. Dues in arrears to a homeowner's association or a second mortgage are other debts that may be involved. Before a property can be put on the market as a shorrt sale, additional creditors such as tax assessors need to agree.

Because many processes and procedures must be satisfied, even after all the creditors are online, the short sale is a relatively complex real estate transaction.

Foreclosure sometimes interrupts the negotiations on short sale houses, which is one reason why short sales are subject to failure. Because both the lender(s) and the borrower are constantly in negotiation, a house that is up for short sale one day may not be available for purchase the next day. For instance, the homeowner may decide to try to refinance in order to keep the house, or he may decide the short sale is too difficult and settle for foreclosure. Sometimes it is the lender who either wants to try to work with the owner, or who decides to opt for foreclosure. The complexities of purchasing on a short sale basis are in some ways similar to those of buying a foreclosed property.

Therefore, completing a short sale involves a longer time period and may entail more delays than the sale of a home on a non-short basis. You should expect to pay less for a property that is in short sale status than for one that is not. Getting to the part where you sign on the dotted line and take ownership requires more than just finding your property and making sure it is for sale. You will need to have your funding readily available. You will want to get the property inspected.

It is a good idea to make an extra check for second- or third-tier creditors. You will be well served to investigate the neighborhood in terms of value of similar properties, and you should find out how much the current owner paid for the property.

Handling a short sale without the assistance of an experienced professional is not recommended because there are just so many things that can go wrong along the way. It is best to use a real estate agency that specializes in this area to negotiate your purchase. A well-qualified agency will have a buyer's agent available to assist you. The buyer's agent's experience will provide you with everything you need to complete the purchase. Jerry Guy is a licensed Realtor who specializes in helping his clients find residences throughout the region, including the Brandon, Florida real estate and Tampa real estate markets. He has extensive knowledge of a range of properties including the highly-specialized categories of foreclosure, REO, Waterfront and Luxury Home properties. Whether you are undergoing military relocation or searching for homes in the Tampa Bay Area for sale to accommodate you and your family, our services can prove invaluable to your success. For more information, please visit Jerry's website at www.JerryGuyBuyersAgent.com.

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