It seem like almost everyday I get asked the same question- "Do you handle short sales?" or "What is a short sale" Short sales seem to be growing by leaps and bounds. In the past 2 weeks I have been involved with about a dozen short sales in one form or another and the volume of calls regarding this area is growing. Simply put, a short sale occurs when a home is sold for a price that doesn't leave enough money to pay off the mortgage. The deal is subject to "third party approval" which means basically the bank needs to agree to accept less for the home then they are owed by the seller. The bank takes a hair cut on the deal or is "shorted". The seller generally walks away with nothing but avoids foreclosure and hopefully a deficiency judgment. On the surface it sounds simple but in practice it is not. Each lender is different and most Realtors have never handled a short sale. It is critical to pick an agent that is familiar with banks practices and knows how to negotiate a short sale. Surprisingly, banks are generally much more willing to take a short sale then they were just a year or two ago. For example, I have an investor client that was recently able to negotiate a purchase for 50% of the mortgage amount owed. This was a win win for everyone involved. If you need help with a short sale or are just looking for advice be sure to ask you agent how many short sales they have been involved in or visit me online at http://www.albanynyshortsales.com
