Marin County Short Sales and REO’s: What Are They And How Do I Buy One? Part 1
What exactly is a short sale? Is it different from an REO?
A short sale occurs when the proceeds from the sale of a property are not sufficent to pay off the lender of record. The lender of record may agree to accept a pay-off that is less than the amount actually owed. The Seller will net zero proceeds, and all proceeds at closing go to the lender.
This process occurs before or sometimes during the foreclosure process. From the lender’s perspective, it can make a lot of sense. Banks usually will net more from a short sale than they will from going through the foreclosure process, and will certainly do so much more quickly.
So a short sale, while not desirable for anyone, make the best of a bad situation. The Seller moves on, the bank gets (usually) more than what they get if they have to foreclose, and they get it faster. They avoid all of the nasty legal and emotional pain of the foreclosure process. So this should be a fairly easy process, right?
Not in the least. Short sales take a very long time - we know of many cases where a bank has had an offer waiting for their approval for over two months! Why does it take so long?
Next: Why Do Short Sales Take So Long and How Do I Make Them…Shorter?
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