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A short sale is short money, not time

tips on buying Charleston homes for saleThere are a few short sales available in the Charleston South Carolina real estate market that are listed on the Charleston MLS. Let's dispel a couple of myths. Most are not cheap, most are not in good condition, and most importantly, all are not easy to buy. What a short sale means is that the homeowner owes more than the bank will receive when the mortgage (s) are paid off. In other words, the lender is short money.

Danny DeVito is short. At 5 feet tall, he is probably one of the most successful short actors in history. But it isn't likely that buyers will be successful trying to buy a short sale. Here's why. Banks don't know how to sell real estate.

While a property that has not yet gone into foreclosure might be "offered for sale", nothing about the listing is approved, not the price, not the terms, nothing. And even worse, the bank generally won't respond to an offer. For some reason, they would rather foreclose, lose even more money and then sell it later. At that point, you might be able to actually buy it.

Read the description of this short sale listing.

This property is being sold as a short sale. Any offer to purchase is subject to bank approval. There is currently one offer that has been submitted on this property. The process could take up to 4 months to ratify a contract per the Short Sale Company. We will submit all offers as they come in, but please let your buyers know it could take months for a response from the bank. The bank will not pay closing cost or assist with any down payment.

We're very fortunate that the Charleston real estate market does not have lots of foreclosures and short sales but make no mistake, there are some and there are likely to be more in the coming year. Complicating matters in a short sale is the fact that there may also be a first mortgage and a second mortgage or home equity line of credit with a second and different lender. Then you have 2 banks who will not agree making the likelihood of a successful transaction even more doubtful.

If you want to buy a Charleston home for sale, there are bargains and you can negotiate a favorable price and / or terms. If you want to buy a short sale, plan on spending a lot of time, just don't plan on moving into the house.

Published Saturday, February 09, 2008 7:41 AM by Howard Arnoff

Comments

# re: A short sale is short money, not time

Wow I can see why short sales may not be so great. Loss of time and might not happen anyway.

I always wondered what the differance was between short sale and foreclosure.

We have many foreclosures in our area as I guess we are seeing across the country.  

Monday, February 11, 2008 4:43 PM by Daytona Beach Condos For Sale

# re: A short sale is short money, not time

Thanks for stopping by. My understanding is that it's a much bigger problem elsewhere but no real estate market will be immune. I'll deal with bank owned foreclosures for my clients but leave the short sales for other agents to try.

Monday, February 11, 2008 4:47 PM by Howard Arnoff

# Short sale listings are bogus

I wrote about the difficulty (or practical impossibility) of buying a short sale in this post . My friend,

Wednesday, March 12, 2008 7:34 AM by Charleston Real Estate Blog

# Are foreclosures readily available, not in South Carolina

I get a number of inquiries from people who are interested in taking advantage of the current housing

Friday, March 14, 2008 8:07 AM by Charleston Real Estate Blog

# Buying distressed properties in Charleston

... is not as easy as late night infomercials are likely making it out to be. I get a phone call or an

Monday, April 28, 2008 6:44 AM by Charleston Real Estate Blog
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