What Does Short Sale Mean in Huntington Beach Real Estate?

What is a short sale?

This is a term that is gaining familiarity among those shopping for a home. Basically a short sale, a.k.a. short pay is a term that is used to describe real estate for sale where the seller is listing it and attempting to sell for less than is owed on the mortgage or mortgages. This does require approval from the lender. Some reasons real estate is listed as a short sale are relocation, divorce, job loss, medical problems, and the most common reason today is the mortgage has adjusted up and they can't afford the payments anymore.

Patience is required when placing an offer on a home that is a short sale. Since it needs bank approval, it will take at least two months. Now, the current owner needs to be able to prove hardship and explain why they can't afford the payments and there is no way they can make up the back payments. There are some short sale listings where there is an approval already and that process will proceed as a normal transaction for the most part.

Each bank is very different on the approval process. Some banks are claiming to attempt to be more customer service friendly in the short sale approval process. But, unfortunately, most of the big banks just can't seem to get there. Now don't get me wrong, they have improved over the past two to three years.

If you are a seller, make sure you talk to someone whether it be your CPA or Attorney. You need the guidance and need to know the ramifications of a short sale on your finances.

The bottom line is the short sale approval process is improving, but is still taking months to close. Be Patient!