Whether it's a cabin or a castle, short sales happen.  A short sale occurs when the debt owed on the property is larger than the amount that can be made when the property is sold.

 

Short sales can be the result of a down turn in the local real estate market, making the property worth less than what the owner owes.  They can also occur when an owner has a change in their circumstances and fall far behind on the mortgage payments, creating too large of a debt to be re-payed through the sale of the property.

 

As the owner this is a tough time, but a short sale can be easier to negotiate than you imagine and it's much kinder to your future credit than a foreclosure or bankruptcy.  It can take time and you must prove you qualify for the short sale option.  There can be tax liabilities but most families can qualify for a one time exemption.  A short sale is the simplest and most logical choice for many sellers today!

 

As a buyer, a short sale is a chance to buy a home at about 15%-20% less than its current market value.  That's called instant equity!  It does take more time to close a short sale purchase.  As much as 45-90 days longer than the norm.  This occurs because the bank, investor or financial institution involved will be losing money and they must be the ones that make the final approval of the sale.  In most cases the rest of the process is no different than buying through a traditional contract.

 

The good news is that there are professionals out there who can and will help.  Answers to your questions and advice on your choices is available.  The first step is consulting a real estate professional, we can listen to your current situation and needs and advise on the next step in process.