Despite their name, short sales are not a quick process. There is a common misconception that short sales do not take long, but the “short” refers to the homeowner being short on their mortgage, or being underwater. This means they owe more than the home is currently worth. In a short sale the bank allows the owner to sell the home and grants them a reduced payoff for their mortgage.
Since the bank is taking a hit in this scenario, they make the final decision on the sell. The owner must agree to sell the property first and then the bank makes a decision as to whether they will accept an offer or not. This process often takes several months. As a buyer, be prepared to wait. Often, the bank will ultimately refuse the short sale or will not accept the offered price.
Short sales can be a good option if you have plenty or time and are willing to wait for a potential rejection. However, in many cases, they just aren’t worth the time and effort for a buyer. Before getting into a short sale transaction consider your options and consult a professional, experienced Realtor.
Allen Tate Realty