February 24th, 2009 4:31 PM by Rob Robbins
There is confusion in the market place with Pre-foreclosures and Short Sales which are both the same thing. I think it is important to understand what type of sale this is and how they work. The definition in layman terms is: the owner of the property is behind on payments; the property is not in foreclosure; and due to the market conditions, the property is for sale for less than the loan amount.
In the current market with a property that needs to be sold it is going to have to be priced very competitive to find a buyer. Buyers right now are looking for bargains. With the dip in market values it may not be worth what the seller owes creating a Short Sale.
This type of sale is not automatic. Make no mistake - the banks do not want the properties back, however they are going to consider if it is better to sell the property with a short sale or foreclose on the property. It is strictly a financial decision for them with no emotion involved.
I want everyone to understand this is a better alternative for everyone involved than a foreclosure. If you are an owner that is having trouble keeping up on your payments - we may be able to help. Give us a call to hear more about your options.
More next time.