Friday, September 10, 2010
Short Sale? More Like LONG Sale! Get it...?
Here's another quick lesson for growing up. We watch TV and read the newspaper (well, online newspaper) and hear and see the jargon. "Short Sales", "Lienholders", "Foreclosures", "Lindsey Lohan" and we simply accept it and move on. But do you really understand it? Some say that buying a foreclosed home is the best and cheapest option. "Go for the Short Sale"! But before you get yourself into a tizzie, I'm going to give you an intensely-straight forward, super easy explanation: #1. Don't buy a foreclosed home, if possible, because it's a BIG-OL mess (which will be explained at a later time when I am bored out of my mind and feel like gouging my eyes out), and #2. If you love a home that is a Short Sale, get ready for some waiting time.
So here is the break down of a what a Short Sale actually is:
-A property is considered a Short Sale when the purchase price won't be able to cover the "lien" on the home.
-A "lien" is a legal claim or hold on a property.
-The Lienholders (those who have placed a lien on a home / basically banks) get to decide whether or not to accept an offer on
thehome because they have to take the sale at a discount. (And THIS is where the waiting happens!)
-Especially after the crap storm the housing and mortgage market went through in the past two years, banks are being VERY
cautious. The Feds are like a bunch of Roided out high school football players ready to run on to the field and shut everyone
-The process of waiting for the banks approval can take up to 6 MONTHS!
So there you go. There is the short and sweet version of what a "Short Sale" is. It's called a "Short Sale" because the owners are "short" on their mortgage payment. Ahhhhh, we all get it now. I hope that helped!