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Anyone know anything about a short sale?

How long does it take...what does it involve? How long does it generally take for the house to sell?

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Anonymous

Asked by Anonymous at 4:58 PM on Sep. 15, 2010 in Money & Work

Answers (8)
  • Well its not short thats for sure. We spent months trying to get the bank to approve. They held on to the bid until they found someone with a higher bid. IMO not worth the time.
    SalemWitchChild

    Answer by SalemWitchChild at 5:04 PM on Sep. 15, 2010

  • Short sales can be the best thing ever, or they can be a headache that never pans out. Justr because a home is put up for short sale, does not mean that the bank has, or will, approve the sale. Many times, I see this as a tactic to buy some time when a homeowner is in finacial distress. Your offer on a short sale could be accepted by the buy, and 6 months later, you may not be any closer to actually buying the home. I have seen people wait for a year. Meanwhile, your deposit fund are tied up in escrow. On the other hand, if it is a "lender approved" short sale and the bank is ready to move, you can get a great deal! just keep in mind that there probably will not be any "asking the seller to fix A or B" because the seller does not have the money or the incentive to do so.
    ImaginationMama

    Answer by ImaginationMama at 5:04 PM on Sep. 15, 2010

  • A short sale is generally better for the homeowner than a foreclosure. It's when the bank agrees to allow you to sell the house for less than you owe in order to avoid foreclosure. It can take a very long time, or be fairly quick, but usually more on the "long time". The house may sell quickly, but because the bank has to approve the sale, it can take awhile. A short sale doesn't stay on the homeowner's credit report as long as a foreclosure does.

    For the buyer a short sale can be a great deal, but a lot of buyers stay away from them because you can invest months of your time, and then lose the house anyway if the bank decides to foreclose, or if the homeowner's don't really want to lose the house and drag it out.

    I'm not an expert, I just know this because we looked at a lot of short sale's and foreclosures when we were buying a few years ago. You should talk to your bank or a realtor for more specific information.
    ohwrite

    Answer by ohwrite at 5:04 PM on Sep. 15, 2010

  • My husband and I just bought a house a few months ago, and we were going to look at some short sales, but we wanted to get in on the $8000 credit, and we were trying to get in the rural development plan which meant we could do 100% financing with no PMI (we ended up getting in on both!) Our realtor said that a woman she works with was working on a short sale with a couple and it was going on 9 months and they still hadn't been approved. A friend of ours was also trying to buy a short sale, and it had been a year since they made an offer and still hadn't been approved so they looked to another which ended up only taking a couple of months. I've heard that the laws regarding short sales and the banks taking so long was supposed to change so that they couldn't take forever...so it may be worth looking into (now)!!!
    dlandrum

    Answer by dlandrum at 5:20 PM on Sep. 15, 2010

  • I guess it depends on if you are wanting to sell your house as a short sale or you are looking to buy one. If you are behind on your mortgage and the bank is willing to do a short sale, then what do you have to lose (assuming you are behind on your mortgage and you owe more than your house is worth)...... If you are buying and wanting to get a deal by doing a short sale, then I wouldn't recommend it unless you have a lot of time and do not have your heart set on one house in particular. Good luck!
    sherribeare

    Answer by sherribeare at 7:21 PM on Sep. 15, 2010

  • If selling- here's how it was explained to me- basically the bank forgives what you owe on the home that has lost value. EX- You owe $170K on your home, but only sell it for $130K. The bank forgives the $40K lost, and won't make you repay it. The CATCH - You have to claim that $40K as ADDITIONAL income come tax season. One would most likely OWE tax on it.

    KairisMama

    Answer by KairisMama at 10:54 PM on Sep. 15, 2010

  • You'll want to talk to your bank about that one. They would control the length of the process once a buyer is found.
    HotMama330

    Answer by HotMama330 at 11:48 AM on Sep. 16, 2010

  • If you get a really good tax guy, you won't have to pay capitol gains tax on the difference of the short sale.
    ohwrite

    Answer by ohwrite at 12:52 AM on Sep. 17, 2010

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