Jerry Guy Buyers Agent Blog

When the sale price of a house is lower than the amount due on a mortgage, that property is said to be up for short sale.

Short sales usually happen when a homeowner has been unable to keep current with his mortgage payments.

Opting to put a property on the market for short sale is often an option that the lender will consider. Let us say, for instance, that a homeowner has a $150,000 on a home and can no longer make his payments. 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 home may be put on the market as a short sale. Short-selling typically takes less time and is less expensive than foreclosure proceedings.

However, it is more complicated than a regular sale.

Short sales often require multiple level of approvals. Dues in arrears to a homeowner's association or a second mortgage are other debts that may be involved. Back taxes may be owed, and these additional creditors may also need to approve the sale in order for the property to be put on the market.

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.

Short sales are subject to failure more often than other types of sales because by the time all the creditors and requirements are satisfied enough time has elapsed that the property goes into foreclosure. You may even see that a property up for short sale one day may disappear from the market on the next because the lender and owner are no longer in agreement. The homeowner may cause the short sale to stop because he may decide to try to refinance or settle for just getting out of the whole thing via foreclosure. Sometimes it is the lender who either wants to try to work with the owner, or who decides to opt for foreclosure. There are complications with buying a short-sale property that are similar to those encountered when dealing with foreclosures.

Closing on a home that is up for short sale is a process that often encounters delays, and usually takes longer to complete than other real estate transactions. For this reason, among others, you should pay a price that is below market value when buying a short sale property. As with the purchase of any real estate property, you will want to do many things before you sign on the dotted line. Getting to contract quickly begins with your ability to quickly produce the necessary funding. It is just as important to have a short sale property inspected as it is to have any new home inspected.

You will need to check for any additional creditors, just to be sure. You will want to know what was paid for the property, and what similar homes in similar neighborhoods are selling for.

As you can see, buying a short sale property is very complex and it is not advised that you do so without help. You will be best served to find a real estate agency that specializes in short sales. It is also a good idea to request a buyer's agent for the transaction. His experience will help guarantee the success of your 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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