Short Sales
There is a lot of hype right now about Short Sales – due, in part, by the large number of them currently on the market. There are many misconceptions about short sales, both by buyers and sellers alike. Many think that short sales are a tremendous opportunity to make a quick buck. Others think that the words “short sale” mean that the process will be very quick. Both ideas are false. Short sales have the potential of being a good deal, however, they may, in fact, end up being a disaster because of the length of time and numerous negotiations required to make one actually close. That is … IF it manages to close at all. Which brings up the second misconception – there is nothing “short” or “brief” in the amount of time it takes to process a short sale. In fact, they take a VERY long time. And they only close IF the responsible parties have demonstrated due diligence in following a very complicated process. The purpose of this article is to try to make some sense of short sales.
1. What is a Short Sale?
The simplest way to understand a short sale is this: A homeowner needs to sell their home, but they owe MORE on their loan(s) than they will be able to receive from the sale of the home. In other words, they will be “short” of the amount of funds required to pay off the outstanding loan(s). A short sale means that the lender has to agree to the sale of the home AND, by so agreeing, agrees to take a loss on the outstanding loan(s). Although a normal home purchase agreement is between buyer and seller, in a short sale, the lender becomes a party to the transaction.
2. What is the difference between a Short Sale and an REO?
An REO (Real Estate Owned property) is a home that has gone through the foreclosure process and is now owned by the lender (bank). REOs are very easy to purchase because the process of foreclosure is out of the way. The lender is highly motivated to sell the property as quickly as possible.
A Short Sale, on the other hand, is exceedingly difficult to complete because the lender does not yet have control of the property. In fact, rather than sell the subject property, the lender often tries to renegotiate the loans and terms to keep from having to foreclose or suffer a large loss through a short sale. Lenders may refuse to talk to Realtors until they are fully convinced that the homeowner’s only option is to sell. This takes time. Usually, the homeowner has to stop making payments for the lender to realize that they are serious about selling. SHORT SALES, because of all of the intricacies involved, CAN TAKE MONTHS TO CLOSE. If you are in a hurry to get into your new home, short sales are probably not for you. Read More…
Showing properties
1 - 5 of 56.
See more Short Sales - Hayward.
(all data current as of
5/19/2012)
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$175,000 : 2463 CREEKSIDE CT, HAYWARD2 beds, 2 full baths
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$187,200 : 20757 Gribben Ave., HAYWARD3 beds, 1 full bath
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$199,000 : 27748 HUMMINGBIRD CT, HAYWARD4 beds, 2 full, 1 part baths
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$225,000 : 22730 ATHERTON ST, HAYWARD2 beds, 2 full baths
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$119,000 : 25930 Kay Av #210, Hayward1 bed, 1 full bath
Listing information deemed reliable but not guaranteed. Read full disclaimer.
Showing properties
1 - 5 of 15.
See more Short Sales - Castro Valley.
(all data current as of
5/19/2012)
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$525,000 : 7245 LAMAR LOOP, CASTRO VALLEY3 beds, 2 full, 1 part baths
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$539,000 : 18007 REAMER RD, CASTRO VALLEY3 beds, 2 full baths
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2 beds, 2 full baths
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$270,000 : 20033 Santa Maria Ave., CASTRO VALLEY3 beds, 1 full, 1 part baths
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$549,000 : 2736 SHEFFIELD PL, CASTRO VALLEY3 beds, 3 full baths
Listing information deemed reliable but not guaranteed. Read full disclaimer.
Showing properties
1 - 5 of 34.
See more Short Sales - San Leandro.
(all data current as of
5/19/2012)
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$300,000 : 15459 Farnsworth St, San Leandro3 beds, 2 full baths
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$339,000 : 837 LINWOOD WAY, SAN LEANDRO3 beds, 2 full baths
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$300,000 : 15459 FARNSWORTH ST, SAN LEANDRO3 beds, 2 full baths
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$199,000 : 16545 EHLE ST, SAN LEANDRO2 beds, 1 full bath
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$250,000 : 1781 EVELETH AVE, SAN LEANDRO2 beds, 1 full bath
Listing information deemed reliable but not guaranteed. Read full disclaimer.
