Short Sales are not easy sales, for anyone!
Short Sale is the sale of your home where you are unable to sell the home for the amount owed to the lenders on the home. Those are not words any of us like to hear. In Surprise Az we are beginning to see more of this activity all to frequently. And it's not happening to bad people, just everyday people who have been caught in a mortgage trap. The only way out of this trap for many is either foreclosure or selling the house with lender approval for less than it's mortgage. I have the experience to help out sellers, and an experience it is. Be sure the Realtor you pick has gone through this process or you could could have more problems and lost opportunities.
Homes can be purchased under short sale conditions by a savvy buyer. But not without a lot of work for the buyer, seller and myself as the listing agent. When a home is in a SHORT SALE status, that means the seller's lender is willing to accept offers and payoff at huge discounts from what is owed. That applies of couse to both the primary and secondary lenders on the home.
As a buyer you won't see a lot of difference in the contract, just the time to get everything done. Lenders are dealing with many short sales at the same time. So the buyer has to be patient just to find out if there offer is accepted. That can take as much as 6 weeks. As the selling agent, I have to develop a relationship with the lender so the deal does not end up on the bottom of the pile. One of the processors I worked with had 120 deals to consider sitting on their desk. You may be working with an initial contact person, processor and someone to coordinate the final closing. And don't be surprised if some of these people change in the middle of negotiations!
The lender will only take a certain amount for payoff and will include all expenses in that amount. So frequently the buyer has to pick up some expenses you might expect the seller to pick up normally. There is special paperwork that is required by the lender and they may required other actions over and above what we normally see. What all this means is that the selling agent must be attentive, the buyer must be patient and willing to negotiate to get to the price set by the lende.
The seller has to be willing to insure the property is ready to sell and responds quickly to lender information requirements. Good prices for homes can be obtained, but this is not for the impatient or the faint of heart. With my experience, I can help smooth the way on this very rough road. Either as the sellers or buyers agent, there is a lot of work, negotiation and perseverance that is needed to make these deals work. Oh, by the way, there is also significant tax ramifications to consider. but I will save that for another time.