Should you stay away from Short Sales In 2014?

Over the past few years a “Short Sale” has been a common term used in Real Estate. Most people know that a “Short Sale” is a home for sale that needs the lender to approve a SHORT PAYOFF because the seller owes more on the home then the asking price.

However,  SHORT SALES are not short at all.  In fact they can take a few months to get the lender to approve the short payoff and to have a successful closing.  With the down turn in the market there was a time from about 2008-2012 where short sales were a very high percentage of the real estate transaction.  Even in 2013 and currently when you search online for a home you will see a lot of short sales available for sale.

However, in the prime of the short sale activity it was fairly common that an approval and a closing would take 3-4 months on a short sale. That now has seemed to go up to closer to 5-6 months, and right now I have one going on 8 months.

Short Sale Head Aches for Buyers to Be Aware Of!

As a buyer do you want to make an offer and wait several months to close on the home?  And as part of the process a lender may come back and want a higher sales price to approve the short sale.  While you wait the interest rates on your loan may go up too! The list of headaches that can come up for a buyer could go on and on…

At this point in 2014 no new legislation has been passed to make a short sale as beneficial as it was the past few years for a seller.  A seller should consulate an attorney and a tax expert to speak about the legal ramifications and the tax impact of a short sale.

The decision to buy or sell a short sale is up to the parties involved.  However, as a Realtor in the 2014 housing market. I really would prefer to not bother with the short sales.