Short Sale SellersIs a real estate short sale good for seller and buyers?
Due to the recent economic downturn, short sales have increased greatly in popularity as short sales enable homeowners to sell their home for less than what is owed on the property.
Unfortunately for overly excited buyers who want to purchase a home at a discount, will find that there is a high failure rate of successfully closing a short sale as they take more time and sometimes more money to close than a traditional sale. Each short sale is different. The lender (not the seller) will be making the negotiations in the end since they are taking the hit financially by forgiving part of the loan. Closing costs and broker commissions are typically paid by the seller, but this time around, will typically be paid by the bank.
It’s quite important for buyers to check for liens against the property and to make sure the bank or the seller are taking care of those costs.
As for sellers, the parties involved on their side now include the lender and sometimes the 2nd or home equity lender, any tax or lien holders on the property, the IRS and any other attorney specialists hired. The deal can get more complicated, costly and time consuming for all parties involved, including the buyer.
It is good to consult brokers and attorneys who are experienced to get an idea of the deal is good and to get a successfully negotiated short sale completed while keeping you happy.