Short Sales Are a Sign of the Times

So, What exactly is a short sale? A short sale is the name given to selling a home for less than what is owed on the mortgage(s). The lender(s) have to agree to take less than what is owed them and usually there are lengthy negotiations between the lender and the seller (and his/her attorney) before a short sale can be authorized. The difference between what the house sells for and what is owed the lender is "forgiven" by the lender and the seller can walk away without debt after a short sale. Because many properties were bought during the boom years of 2004 and 2005 at the height of the market with modest down payments, many home owners find themselves "upside down" in their mortgages in today's declining real estate market. These homeowners owe more on their mortgages than they can realistically resell their homes for. To qualify for a short sale, home owners must already be delinquent in paying their mortgage(s) and the lender needs to agree that allowing a short sale is in the interest of the lender instead of the alternative---which is foreclosing on the property. In 2006, when the real estate market first began to decline, lenders were more than happy to let properties foreclose. The lenders had insurance which paid the expenses and they could deal with the number of problem mortgages. However, in 2007 the number of foreclosures doubled and the number doubled once again in 2008. Banks could no longer keep up with the shear number and side effects---broken pipes, missing copper tubing, tall grass, and neighborhood blight--- making foreclosures disturbing to communities and the public in general. The banks were no longer the good guys---they were seen as tricksters, unsavory and dishonest. Short sales became more common and easier to agree to by the banks and attorneys specializing in short sales found their niche in a down market. Short sales are now a way of life for all of us in real estate---even the luxury market. We now most partner with specialists who can negotiate with banks for our clients. Only those specialists with the most experience and patience are successful in reaching the proper people and getting the permissions in a timely fashion. Short sales delay the selling process by 90 days or more. Banks are bought by others and personnel keep changing. We at Olde Dartmouth Sotheby's International Realty have partnered with a short sales specialist, an attorney, who handles short sales for our clients. In addition to sellers, we have buyers who are interested in purchasing homes in a short sale. Clearing the title and getting the required permissions are key.
This process is tedious and the closing period is long and stressful. It really helps to have someone who can reach the lender and get the information needed. Let us help you navigate this path if you have the interest in buying a short sale or if you find that selling "short" is the best answer for you. We will make the process as pleasant and speedy as possible.