• Condo Projects Show Signs of Life in Housing Market.
  • Watch Video
• Join us Wed July 22nd for the Grand Opening of Southend Towns
  • Print Invitation
• New and Veteran Agent Training August 11th through 18th
  • Careers at My Townhome
  • Email for Course Content
• See Listings Under Contract & Sold  
• See Price Reductions
• 5 more homes under contract - Only 3 Left At Woodstone of Elizabeth

• July 17th, Friday 11:00 -6:00pm
  Stonegrove - 7414 White Elm Ln
   
• July 17th, Friday 12:00 -5:00pm
  Midwood - Central 27, 1611 Central Ave
   
• July 18th, Saturday 10:00 - 6:00pm
  Commonwealth - The Vyne, 3220 Central Ave
   
• July 18th, Saturday 11:00 - 2:00pm
  South End - The Abbott, 1943 Abbott St
   
• July 18th, Saturday 11:00 - 5:00pm
  Woodstone - Woodstone Of Elizabeth, 2940 Craftsman Ln
   
   All Open Houses >>

A Buyer's Guide to Purchasing Short Sale Properties

The term short sale refers to a real estate transaction in which the net sales price of a property falls short of satisfying the outstanding debt. Typically a short sale is granted by the lender when a borrower has a financial hardship(s) that makes it impossible for him to keep up with scheduled mortgage payments. In this case a short sale may be granted to allow the bank to recoup some percentage of the outstanding debt without going through foreclosure proceedings.

Is a short sale a good deal?

The listing price is not always (or often for that matter) representative of a realistic sales price. Many times an ultra low value is promoted by the listing agent or seller to draw interest in the property. Lenders aren't naive or unaware of the value of a home. When the first offer on a short sale is received the lender will order a form of value appraisal known as a BPO (Broker Price Opinion) or a CMA (Comparative Market Analysis). Once received the lender will make a financial decision based on the offer price, outstanding debt and the relative market value. If a lender believes a better price can be obtained by taking the property back in foreclosure over a short-sale offer, the lender may hold out for a higher price. The net result is that although there is a potential for a percentage off market value in a short sale transaction it is not in any way a guarantee.

HOT
Properties