Paso Robles Real Estate

Beware! Short Sales Are Not Short!

The definition of a short sale is when the lender allows a property to be sold for less than what is owed to the lender.

This can be a winning situation for a buyer looking for a “deal” and a winning situation for the seller who is looking to get the home sold and out from under a mortgage he/she can no longer afford.

However, if you are considering making an offer on a short sale, first of all, don’t get your hopes up too high for the following reasons:

1. Lenders have a ton of shorts sales and foreclosed properties on their books, so it can take several weeks to 3 months to get a lender to approve an offer on a short sale.
2. The lender might refuse your bid, push back possible negotiations, and in the meantime accept a higher offer.
3. If there is a 2nd or 3rd on the property, even if the 1st lender approves your offer, the 2nd and 3rd may refuse to relinquish their interest in the property; therefore leaving your offer in limbo and the clock running for the home to be foreclosed upon.

If you can, be sure to have some extra cash on hand in case you need to pay some monies toward the 2nd or 3rd, if there are additional lien holders, to encourage them to allow the sale to proceed.

A REALTOR(R) experienced in short sales can guide you through each step and protect your interests…

If you would like to search the MLS for listings in and around Paso Robles, visit my website. If you have any real estate questions or general questions about Paso Robles or San Luis Obispo North County, please contact me via email or call me at (805) 235-0234 for more information.

It starts with a dream…

Tags: foreclosure, paso robles, short sale