Why Short Sales Are No Big Deal!!!

Why Short Sales Are No Bargain
For the past 18 months, the hottest buzz in real estate has been about short sales, and real estate agents have been pushing buyers to buy short sales.

Now, I can understand if a buyer has fallen in love with a particular home that happens to be headed into foreclosure. Some homes are special. So, I can rationalize why a buyer may pursue a certain home as a short sale. Because they would ordinarily buy it if it wasn't a short sale. But otherwise, buyers are getting the raw end of the stick. Short sales are not a bargain.

Short sales happen because a property is worth less than what is owed against it. Sellers, or their agents, negotiate with the sellers' banks to release the mortgages in exchange for accepting less than the full mortgage balance as payment in full. Why would a lender accept less than its full mortgage balance? Because the property, which is security for the loan, is worth less than it appraised for when the mortgage was originated.

This means that short sales are selling at market value. Market value, people! And that's only one of 11 reasons why short sales are not a good deal for home buyers. Don't buy into that short sale hype . . . read more about why Buying Short Sales are no bargain.