Short Sales

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Short Sales

March 7th, 2008 Category: Real Estate News

4279607381 Before this happens, there is the possibility of a short sale. This option is an agreement between the homeowner and the lender that discounts the mortgage due to a financial hardship. It’s better for both parties than a fore-closure too. Not surprisingly, with the massive sub-prime loans, ARMs, and investor held mortgages, short sales are catching on quick.

Even if you’re more concerned with who will win American Idol than the plummet of our economy (hey, even Simon is more inspiring), you’ve heard that getting a mortgage ain’t what it used to be. Mortgage companies are closing and large lending institutions have lost millions even billions of dollars. The market is so tight now, even lenders want out of their own business.

Fore-closures have not skyrocketed in Myrtle Beach. And, it won’t be as huge of an issue as it already is in other pricier, heavier investor-oriented states. However, short sales are appearing in increasing numbers on the MLS. I showed two beach houses in Surfside Beach last week that are short sales. One has been reduced in price again since then. These homes have great rental histories and rental reservations for the upcoming season already. The owners simply took on too large of a mortgage to handle.

Short sales are a win/win: it helps the current homeowner and gives one heck of a great bargain to anyone smart enough to buy in a down market.

One Response to “Short Sales”

Jonathan Bunn - Ashburn VA Real Estate Says:
April 7th, 2008 at 12:35 pm
Seriously? How is a short sale a win/win for any one but the seller and lender. We are dealing with a flood of them here in northern va and the effect that they have on the overall market is detrimental. the long term effect of these is fake prices that get a ton of offers which do not get bank responses for weeks. this freezes out buyers who usually get rejected because the prices these listings are offered at are fake. I just wrote an article on my site called “letting the cat out of the bag on short sales.” i encourage you to check it out. i am not seeing to be contreversial, but i have seen the downswing of our market and a lot of it would be cleared up if it wasn’t for these types of sales.