Short Sales - Are They Really A Bargain?

What do you know about short sales? Besides the mechanics that a homeowner owes more on the mortgage than the market will bear, thus the difference is the "short." You've heard us refer to them as requiring 3rd party approval as well. That 3rd party is the mortgage company and what they approve is if the "net" of the transaction (when the property settles) is enough money for them. 

Some people think they are good bargains and frankly in some areas they are....but what about Lorton? Well that too depends. It depends on if you're looking at townhouses or single family homes and where in Lorton.  And it depends on if the listing agent listed the property near or at market value. You see, if the property isn't listed at or near what the market is, then when the bank gets your offer to purchase a property at a much lower price, they can come back and "counter" the offer at market value. (Remember this is all about the bank getting as much as they can out of this transaction.) If the contract price is off by only a few thousand dollars you could negotiate that counter offer. But what if the contract price is off by more than $60,000 or $70,000? What then?

I've seen it happen and many times the buyers walk away from the purchase. They walk for a variety of reasons; maybe they don't qualify for that much more of a house; or they had what they thought was a valid contract for a certain price and they don't want to pay more than the original price; they are tired of waiting for several months for the transaction to consumate and now the bank wants to negotiate!   

Oh and the timeline for a short sale???  Standard answer - allow 3 to 6 months. It could take less, it could take more time.  It's all about the bank.

What would you do? What other factors do you think influence a short sale?  If you want to know, call me.  Jacquelyn Nunez, Exit Realty Associates, 8998C Lorton Station Blvd., Lorton Station Town Center - 703-339-7506.