subject: Why Short Sales can be Long Sales [print this page] Buyers and sellers alike often have disdain for short sales, and one of the biggest reasons is that these so-called short sales can take a long time to close. They have many different difficulties, and many people would rather not take the time and trouble to deal with them.
What is a short sale? If a homeowner wants to sell a property, but the outstanding loan for the property is higher than the value of the home, it is a short sale. The seller will try to get the lender to allow them to sell the home at a price lower than the value, so they will be able to get rid of it. They also ask that the lender forgive the remainder of the loan. It has nothing to do with the length of time associated with selling it.
One of the reasons these sales are problematic is that the lender is not often willing to take part in a sale like this. They can take an inordinate amount of time to make their decision as well. They have to consider whether they are going to allow the sale because they need to determine how it is going to affect them.
People who choose a home that is a short sale are going to need some patience. They need to realize that the process can take a long time. While the savings on the home might seem great, they need to factor in the amount of time it is going to take for the sale to go through, if the sale is even allowed.
While they are waiting for the short sale, they may find that other offers that are higher than their offer start to come to light. A seller is going to choose the better offer, and this means that after waiting for so long the buyer is going to have to bump up their offer or start looking for a new property to buy. Buyers will also find that a number of fees, such as high closing costs, may be awaiting them if they are lucky enough to buy the short sale home.
With all of the problems that can turn these short sale properties into long sales, it makes more sense in most cases to find a home that is ready to buy with no problems or strings attached.
