Asked by: Zaim Boergerasked in category: General Last Updated: 1st May, 2020
What does a short sale mean?
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In this way, why is a short sale bad?
A short sale results when sellers don't receive enough cash from buyers to pay off their mortgages. Maybe the seller paid too much or borrowed too much for the property to begin with, or the market has dropped so the property's fair market value is less than the existing mortgage balance.
Also, what is the process of a short sale? A Step-By-Step Guide to the Real Estate Short Sale Process . A short sale occurs when a lender agrees to the sale of a property at fair market value even if the outstanding mortgage against the property is more. They fall through for a variety of reasons, particularly if there's more than one lien against the property.
Subsequently, question is, can you negotiate the price of a short sale?
It is entirely possible to negotiate a short sale , but doing so can be a time-consuming process. Instead of negotiating with the seller alone, as is the case with most traditional sales, short sale negotiations must be approved by the lender, too.
How long does it take for a short sale to go through?
Once an offer is received and signed, I send it to the bank, along with the seller's short sale package and a prepared HUD. From that point to the time of short sale approval, the average timeline is about 60 to 90 days. It means 30 days to sell + 60 days for approval + 30 days to close escrow = 4 months, on average.