IrvineRenter_IHB
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[quote author="Drew" date=1241426812][quote author="Sunshine" date=1241401725]
If you search "short sale" in the search function you will likely find a lot of information and discussion on the topic. A general internet search will also bring up good information. One of the experts on this site may also respond here to provide a detailed explanation. The short answer is that if the short sale is not bank-approved, then no transaction can occur and it's a big waste of a buyer's time. In a short sale, the homeowner's total mortgage debt is more than the value of the home (i.e., the homeowner is "under water") and the homeowner would like to sell the home for less than the total mortgage debt owed. Since the homeowner would be selling the home at a loss, all of the lienholders (mortgagees) must approve the sale. Otherwise, there can be no transaction. Often times, the homeowner has more than one mortgage on the property (e.g., first mortgage and second mortgage). All mortgagees must approve the sale. A short sale is usually indicative of a foreclosure (but not always). As a result, it's important to find out if there is a notice of default (NOD) on the property, if an auction date has been set, etc...</blockquote>
Outstanding information. Thank you for posting. I had heard that is what a short sale is, but I don't understand one thing. How can you advertise your home as a short sale, when it technically isn't. (being that the bank did not approve of it.)
It either is, or isn't right?</blockquote>
The people are advertising that if the sale were approved, it would be a short sale. An asking price is basically meaningless. The seller is under no obligation to sell the property even if the asking price is agreed to by a potential buyer. The real estate negotiation does not begin until a buyer puts in a formal written offer. Once this occurs, a seller can agree and force a sale, but the person making the offer has no power to force anything. Often a seller counters and then the buyer can agree and force a sale, but only if all the contingencies are met. There are always contingencies to offers and counteroffers that must also be met in order for a sale to take place. If the contingencies are not met (a house fails inspection or a buyer cannot obtain financing) then the deal falls through.
If you search "short sale" in the search function you will likely find a lot of information and discussion on the topic. A general internet search will also bring up good information. One of the experts on this site may also respond here to provide a detailed explanation. The short answer is that if the short sale is not bank-approved, then no transaction can occur and it's a big waste of a buyer's time. In a short sale, the homeowner's total mortgage debt is more than the value of the home (i.e., the homeowner is "under water") and the homeowner would like to sell the home for less than the total mortgage debt owed. Since the homeowner would be selling the home at a loss, all of the lienholders (mortgagees) must approve the sale. Otherwise, there can be no transaction. Often times, the homeowner has more than one mortgage on the property (e.g., first mortgage and second mortgage). All mortgagees must approve the sale. A short sale is usually indicative of a foreclosure (but not always). As a result, it's important to find out if there is a notice of default (NOD) on the property, if an auction date has been set, etc...</blockquote>
Outstanding information. Thank you for posting. I had heard that is what a short sale is, but I don't understand one thing. How can you advertise your home as a short sale, when it technically isn't. (being that the bank did not approve of it.)
It either is, or isn't right?</blockquote>
The people are advertising that if the sale were approved, it would be a short sale. An asking price is basically meaningless. The seller is under no obligation to sell the property even if the asking price is agreed to by a potential buyer. The real estate negotiation does not begin until a buyer puts in a formal written offer. Once this occurs, a seller can agree and force a sale, but the person making the offer has no power to force anything. Often a seller counters and then the buyer can agree and force a sale, but only if all the contingencies are met. There are always contingencies to offers and counteroffers that must also be met in order for a sale to take place. If the contingencies are not met (a house fails inspection or a buyer cannot obtain financing) then the deal falls through.
