Short Sales

It is not easy to buy a short sale simply because the lender has to approve of the sales price of the home. The bank has to decide how to handle the difference between the proceeds of the sale and the mortgage amount due from the borrower.

Each lender approaches a short sale differently and it takes time to get an answer. Buyers should know that alot of time and effort can be expended to find out the bank will not approve the sale.

Or they approve the sale but they want the seller to take out a personal loan for the balance between the sales price and the mortgage amount due. Or --- do they really forgive the difference in the payoff amount and the mortgage balance due? However, an increase in short sales seems like a positive. Homeowners need to or want to move and are pursuing this approach rather than a foreclosure, at least initially. The real estate industry is changing and those that can use the trends to their advantage will do well in buying a home now.