Tips For Buying Or Selling A Short Sale in Real Estate

Short sales are becoming more and more common in the real estate industry. A short sale is the sale of real estate in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full.

A short sale is the sale of real estate in which the proceeds from the sale are less than the balance of debts secured by liens against the property and the home owner cannot afford to pay the liens in full. Short sales can be very tricky, no doubt about that.

In every real estate transaction I am a firm believer of a buyer having representation. It makes perfect sense for a home buyer to have someone in their corner giving them guidance. Unfortunately when it comes to short sales I have found that so many buyer's agents are not properly educated enough to do a proper job.

A short sale is a home sale for which the proceeds are less than the amount of liens on the property. In the event of a short sale, the lien holder (lender) must agree to accept less than the amount owed and must give permission for the sale to be completed.

With the housing crisis behind us, the real estate market in America is experiencing fewer short sales and foreclosures. Short sales, or distressed sales, happen when the seller is upside down on their mortgage and negotiates with their lender(s) to sell the home for "short" of what is owed.

There is no doubt that a short sale is not your run of the mill Real Estate transaction. Anyone who has ever been involved with one as a listing agent knows there are a lot of hoops to jump through! On a national level there is a very high percentage of short sales that never make it to closing.

The success of short sale depend upon a number of factors that need to be addressed properly. If anyone of them is missing short sale would not be successful. A short sale failure may be stressful for a seller, but it is advised to be normal in case short sale fails.

Final in a series of Cold, Hard Facts in Real Estate, here I tackle the Short Sale. If you're a regular reader you may have already read about the Cold, Hard Facts in Home Selling and the Cold, Hard Facts in Home Buying. Today, I'm talking the truth about selling a home as a Short Sale.