Most people have begin to hear about short sales. It is heating up to be one of the hottest segments of the industry and can be a boon to buyers, sellers, agents and the market itself.
With the precipitous rise in foreclosures every major lender has adopted short sales as a way to keep their bank owned inventory from going through the roof. Simply stated, when faced with taking a home through foreclosure, the bank would prefer to accept less that the full amount owed from a sale by the sellers.
The reason they are willing to do so is multi faceted. On average, according to Freddie Mac, it costs the lender from $20,000 to $40,000 to take a house back. That comes in the form of legal fees, carrying costs, maintenance and other associated costs. Often, they are restricted from marketing the property for at least 6 months and the house has gained no value in that amount of time.
If they can entertain a short sale offer without going through the entire foreclosure, it is a win-win for all parties concerned. One less foreclosure equals one less thorn in the side of the entire housing market. The seller emerges without a foreclosure on their record, the buyer often ends up with a stellar value, the agents both have a sale and the neighborhood is spared a vacant house which often detracts from the rest of the neighborhood.
Since the word got out that Karen & I have had great success with short sales, sellers in distress just keep finding us. We have helped people all the way from low income houses to upper bracket homes, all finding themselves upside down and needing to sell.
Feel free to contact us to discuss a short sale or any real estate need. 913 385 4000