People who are looking for a home often ask us about foreclosures and short sales. People know what a foreclosure is. Many don’t know what a short sale is. Let me explain. A Short Sale simply put is when the seller has the home on the market and the sale price will not pay off the liens against the home. IE The home sells for $600k but they owe $800k. Where does the $200k difference come from. This is where the bank (lender) is involved and needs to forgive the difference.

That being said, buyers think that these distressed sales are a ‘deal’. Well not necessarily. In either case, the bank ‘selling’ the property will get what’s called a BPO (Bank Price Opinion). Basically, it’s a 3rd party appraisal of the fair market value of the property. The bank with use this to negotiate the highest possible price for the sale. So as you can see, it may not be such a deal.

The thing we tell clients is to simply go out and find the house the want. The home they want so much that they can’t see anyone else living there. If it happens to be a foreclosure or short sale, we will take the appropriate steps to get them the home. Hopefully, it’s home where the seller’s ready to sell and you can move in quickly!! Let’s go find your home!!