Beware the Short Sale
Posted on | January 24, 2009 | No Comments
I know, short sales can be a great thing for the buyer who is smart and can wait out the bank and the seller to get a great deal. I get it. However, I have run into more than several people of late who have been convinced by short sale companies that in just a matter of time, their homes would be bought by the company and the bank would settle and they would not have to file for bankruptcy. Unfortunately, for every family a short sale company helps there are many that they don’t.
You just need to be aware that the short sale company may not ever buy your home. The reason is simple; the offer may just not make since and the bank knows they can get more by selling on the open market. Here’s an example of a short sale deal that went south that I recently had privy to; current mortgage $580,000; current appraisal $490,000; short sale company offer $250,000. The ban could not afford to sell the house with that kind of loss.
This is not to say that some of these companies can’t help because they can. Just be aware of the pitfalls and know that they are not what some are claiming. Talk to your lender first and try to make that work before signing on with anyone who makes promises that seem to good to be true; because they normally are.
Comments
Leave a Reply