Short sale – a property that is going to be sold as a distressed piece of real estate.
It’s where the seller is wanting to tell their lender or mortgage holder, they want their permission to sell the home, condo or townhome for less than what it’s worth.
This happens because of the agent they have hired to negotiate the short sale is making this process possible.
This is not as simple as it may appear. The home seller will need to prove to their lender that they “need to sell” the home for less than what they owe due to some type of hardship.
Strategic short sales also work out, even if the seller “doesn’t need to sell” they, (the bank, banks or lenders), sometimes approve these short sales.
Divorce – Disease – Job Loss – Lay off’s etc, any change in their financial status will work.
However, the short sale can be used as a way to starve off the foreclosure process.
If the agent wants to use the short sale home as a “hook or lead generation” property, they can tie it up within the MLS and advertise it for sale.
They can also have an offer they have received, that the bank is working on, but these corrupt agents delay the process by not being attentive to the bank’s requests.
Sometimes, short sales don’t get approved in the best of circumstances.
Sometimes short sales go the foreclosure / bank owned route.
It seriously depends on the seller, their attentiveness and the agent they hired to negotiate the short sale on their behalf with their bank.
Short Sales can sit, showing active, when they are not really “available” for sale.
The agents, the bad agents, who are playing this game, are showing the short sale as being active, when they have an executed offer between the human seller and a real estate buyer.
When your realtor, and if that is us, tell you the short sale is a “game” this is what we are referring to!
The way the “bad” agents are able to do this without issue, is by falling back on the short sale verbiage contained in the “confidential remarks” within each short sale.
“This property is a short sale – All terms, commissions, sales price, etc, are subject to lender approval.”
Therefore, you will see a short sale advertised for sale, at a remarkably low price, after lots of days on market, but when your agent calls, the agent tells them the property is not being shown any longer!
Make sure you are working with our SCVnest team at REMAX of California so we can run the proper interference for you and keep you safe from these games!