Short Sale Experience
As I have mentioned before in my blog, a short sale occurs when a homeowner is unable to sell his/her home for the amount owed. When this happens, banks MIGHT agree to consider a short sale which allows the homeowner to sell the property for less money and not be liable for the shortfall in proceeds. There can,however, be some negative consequences for those who do short sales. One’s credit rating can plummet and short sellers will not be able to qualify for a new mortgage for a 2-3 year period or more.
We listed a home on the far east side of the city in July and received 4 offers for the property. Although we ended up with just one accepted offer and the bank has agreed to an amount to sell the property, we do not have a definite time to close the transaction. Because the bank is taking a loss in this deal, there is no strong incentive for them to close this sale since they do not realize the loss until the time of closing. Short sales can be frustrating for all parties involved in them but occasionally, a patient buyer can purchase a home at a good price.