In real estate, what is a “short sale”?
Posted by | Posted in Buy My Home Fast - Questions & Answers | Posted on 13-07-2010-05-2008
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Question by BaldisBeautiful: In real estate, what is a “short sale”?
im looking into buying my first home and i am trying to understand what a short-sale is when rreferringto a bank owned property. the website says ” bank owned property, this is not a short sale”.
is a short sale something tthat iwould want? if a house is available for short sale does that mean the whole process is quicker? less paperwork? what are the pros and cons?
thanx xD
Best answer:
Answer by v b
Short sale takes longer and there’s more paperwork. (The borrowers are still in the property and have to get permission to sell.)
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A short sale – The homeowner gets permission from the bank to sell the house for less than what he still owes on it.
This can get complicated… stay away from it.
REO – Real Estate Owned (Bank Owned) The house already went thru foreclosure but nobody bought it at the foreclosure sale and now the house belongs to the bank. This is the best deal for you. There are no hidden liens or mortgages on the house and the bank usually sells it for a bargain. Banks are not in the Real Estate business and do not want the added expense of keeping the house in shape.
Make sure that you have the house inspected, etc. before you decide to buy an REO.
Good Luck.
A short sale can be used as an alternative to a foreclosure or bankruptcy proceedings. Here is a site where you can read about them.
http://homebuying.about.com/od/4closureshortsales/a/shortsalebasics.htm