Encore Realty

Short Sales
This term has become a household name. Several years ago hardly anyone knew what a short sale. Most realtors and other professionals hardly knew what it was or even how to handle it.
A short sale (pre-foreclosure) is nothing more than a loss to the bank at the time of sale. If a bank owes $250,000 on a home and they sell it for $200,000 then they shorted (lost) $50,000.
Now that’s the easy part. The hard part is finding the professional realtor, mortgage broker (banker), and title company to facilitate the process. Yes it is a process. A short sale can take anywhere from a few weeks to 6 months. There are too many variables to list in a short sale
Scenario. However, here are a few;
1. The Investor
2. The servicer of the loan
3. Type of loan
4. Balance of loan
5. Liens against property
There are many, many, more factors when dealing with a short sale. Why would anyone want to buy a short sale? Well, because a short sale is a pre-foreclosure. Some people loosely call a short sale a foreclosure. That isn’t true. They are in the foreclosure process but it hasn’t been
Foreclosed upon. If it had been foreclosed on then it would be called a what? It’s called a REO.
To answer the question above is simply put, that you have the chance to purchase the property before foreclosure, but at a foreclosure price. The cost is time and patience. You need to work with a cutting edge company that is up with the times. Short sales are something that our company was doing when short sales weren’t even popular. Short sales can be done in any market but they are definitely at an all time high right now.
It’s a great time to look at purchasing a property that’s not foreclosed on but is at a foreclosed price. Remember patience and time is what needed on these transactions.