short sales are another opportunity to purchase a home in today's market from very motivated sellers. A short sale is a real estate transaction with a total purchase price that is less than the loan amount(s) due on the home. For a potential buyer, a short sale is a great way to buy a home at market prices. The seller has agreed to sell the property and the seller’s lender has likely agreed to a reduction in the principal loan value rather than take the home back in a foreclosure. This reduction in the principal loan value, or short pay, is why the transaction is called a short sale.

Traditionally, short sales can take a long time to close. What happens in a short sale is the price that the buyer wants to pay needs to be approved by the seller’s lender too, not just the seller. Because the lender must agree to a reduction in the principal, they are involved in the process from the time the buyer makes an offer. The traditional short sale approval waiting time can be a frustrating experience for home buyers and real estate agents often requiring 60 to 90 days for an answer so make sure you are working with an Agent that has experience with the Short Sale Real Estate Transaction.

Teri Pacitto, Broker Associate DRE#00997649, REALTOR, CDPE, CHS, SFR  

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