A short sale is when a seller’s lender is agreeing to accept an offer for less than they currently owe on the property. Many times the borrower has defaulted on their mortgage and it is in a delinquent status, but a short sale does not have to be in default for the bank to look at taking a lower offer than what the sellers owe for the house.
One main thing to know about a short sale is that is by no means going to be a short time frame for the lender to respond. Often once an offer is submitted to the bank, it will be anywhere from 30-45 for the bank to even respond to the offer. Buyers and seller alike must be very patient with the process.
Just because a property is listed with short sale does not mean the lender will accept the buyer’s offer even if the seller accepts it. Lenders will likely not agree to a short sale unless the seller has no equity and is unable to repay the difference between your sales price and the existing loans. Sellers need to provide a hardship letter to the lender.
Examples of hardships include divorce, job loss, etc. Once the hardship letter and supporting documentation have been provided to the bank (ie. Bank statements, pay stubs, and other relevant financial information) the bank will then hire a third party to determine a value on the home.
This can be an agent hired by the bank to do a BPO (broker price opinion) or in some cases the bank will hire a certified appraiser to value the property. Once the bank has that number, they will take the offer, supporting documents and BPO to the investor who backs the loan for their approval.
Then after they determine what they will take and both buyer and seller agree on the price, the bank will issue a formal approval letter needed to close out the loan.
So, what is the benefit for the parties involved in a short sale? The short sale may have a less damaging effect to the seller’s credit than a foreclosure. For the buyer there is a possibility of purchasing the home for less than market value, if they buyer has the patience to wait for the process. Our average short sales take about 4 months to complete.
One level ranch home with easy maintenance yard. Home sits well back from the road and has ample parking in the driveway. Great starter home, rental or home to downsize t...
Listing courtesy of Keller Williams-PDX Central.
This 1959 Chalet style ranch is in a lovely neighborhood within close proximity to I-5. Situated on a large level lot with enormous yard around back. Inside, original har...
Listing courtesy of M Realty LLC - L.O..
Price reduced!! Value and quality are yours in this lovely custom built home, and it has it all! Three car garage, central air unit, large open living area and bonus room...
Listing courtesy of Coldwell Banker Professional.
Do not disturb tenants - drive by only.Great 4bd/3ba home w/ Great 4bd/3ba home w/ wood stove, living room, family room and dining room - large fenced level back yard, ov...
Listing courtesy of Premiere Property Group, LLC.
SHORT SALE-SOLD AS IS,NO REPAIRS.One level living with large master suite, walk-in closet has built-ins, and attached full bath. Back yard with dog run. Low yearly taxes!...
Listing courtesy of Keller Williams Realty Portland Premiere.
The content relating to real estate for sale on this website comes in part form the MLS of Central Oregon. Real Estate listings held by Brokerages other than Real Estate Company are marked with the Reciprocity/IDX logo, and detailed information about these properties includes the name of the listing Brokerage. © MLS of Central Oregon (MLSCO). This content was last updated on . Some properties which appear for sale on this website may subsequently have sole or may no longer be available. All information provided is deemed reliable but is not guaranteed and should be independently verified. All content displayed on this website is restricted to personal, non-commercial use, and only for ascertaining information regarding real property for sale. The consumer will not copy, retransmit not redistribute any of the content from this website. The consumer is reminded that all listing content provided by automatic transmission by MLSCO is © MLS of Central Oregon (MLSCO).