Cincinnati Real Estate: Short Sales
The Cincinnati Enquirer ran an article today on the rising number of short sales occurring in the current real estate market. Short sales are transactions that occur when a bank or lender agrees to accept less than what’s owed on a home loan to avoid foreclosure.
Why would a seller consider a short sale in lieu of a foreclosure? Although it is still damaging to a seller’s credit and can drop their credit score by as much as 300 points, it can be preferable to try to settle with the lender without incurring the substantial carrying costs and legal fees for the lien holders and property owner while properties move through the foreclosure process which can take multiple months. Fannie Mae recently adjusted their guidelines to dictate only a two year waiting period for a short sale seller to buy another primary residence, while they extended the waiting period for foreclosures to five years.
For buyers short sales can be a good opportunity to purchase a home for below market prices. These homes are less likely than foreclosures to be distressed because the homeowners is still occupying the property. Buyers beware that while there are great deals to be had, the short sale process can be long and frustrating. Some properties can take several months to close due to the number of parties involved.
If you are experiencing financial hardship and are considering a short sale or foreclosure of your home, please discuss your options with your accountant or attorney prior to making the decision to short sell or foreclose. If you need recommendations of professionals in the Cincinnati area, please contact me.
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The Cincinnati Enquirer ran an article today on the rising number of short sales occurring in the current real estate market. Read more to better understand short sales and the impact on Cincinnati’s market….
Dan Simon - Charleston SC Real Estate (1 comments.)
Apr 14th, 2009You make some good points, thanks for sharing. There are some great opportunities out there for buyers in today’s market. In Charleston SC, I get calls daily from buyers interested in putting an offer in on a “short sale” property. As a “buyers agent” with experience in short sales, I really explain the process to a buyer and prepare them for a potentially drawn out and frustrating experience. They risk spending money on inspections etc….. to then have the deal fall through at the last minute. If the buyers have the patience and the property really suits their needs then it might make sense to move forward. If the buyer needs to coordinate the closing of the short sale property with the closing of the sale of their current home they could be in for a bumpy ride. I also come in contact with and help many sellers that have fallen on hard times. There are several very good and experienced accountants & attorneys in the Charleston SC area that can help to guide a seller through the process. A seller needs to take action as soon possible to avoid foreclosure.
Richard Stabile Bergen County Real Estate (1 comments.)
Apr 14th, 2009Short sales are tough, I just seen a statistic in Nevada only 206 shorts closed in Las Vegas out of over 6500 in deposit. Very low ratio. Some areas as ours in Bergen County New Jersey, shorts sales are tough, but not as bad as Nevada’s.
If everyone works together, short sales can be done.
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