Outer Banks Short Sales

Sept. 10, 2009 - PRLog -- Short Sales
More and more Outer Banks property owners are turning to short sales as they fall behind on their monthly mortgage payments. The short sale strategy to avoid foreclosure and the damage it does to a credit report has people  turning to it more then ever before all across the country. Short sales are the last ditch effort to help salvage something out of the mess.

A property is sold "short" when there will not be enough money from the sale to pay off the mortgage. If the bank agrees to take less money then the property is sold as a "short sale". Too often the Short sales on the Outer Banks end up foreclosures. http://www.outerbankshome.com/real-estate-news.html

Low Prices
When you come across a property in a short sale there is a good chance it will have a super, too good to be true, discount price on it. This is because the bank won't say how much short they are willing to take so the seller has to guess at a price. To attract multiple offers and create a bidding war these unrealistically low prices are put on the property. Prices that might not be accepted by the bank.

Time Line
The banks are being overwhelmed by these sales and have found themselves to be understaffed. Consequently, you can find yourself waiting for extended periods of time for an answer as to whether the bank will let the sale go through. Don't be surprised if a response doesn't come for anywhere from 6 weeks to 6 months or longer. You would not be the first person to wait only to find out the bank decided to go ahead and foreclose on the property instead of the short sale. It is a highly advised to hold off on locking in your loan and wait until there is confirmation everything is ok.

Casualties
Short sales are delicate deals that easily fall apart with things like a second mortgage or a line of credit. The second lien holders generally do not cooperate and the deal dies. Sometimes the loss mitigation department, which handles short sales, is not communicating with the foreclosure department and the property gets foreclosed on while it is being sold in a short sale.

Legal Stuff
On a short sale the buyer can get out of the deal at anytime while they are waiting for an answer. The buyer can also have any inspection they want done but generally there is no money to get anything fixed.

be patient

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Helping people buy and sell Outer Banks real estate http://www.outerbankshome.com from Corolla to Hatteras Island including Nags Head, Kitty Hawk, Duck, Southern Shores, kill Devil Hills, Colington, Manteo and everywhere in between. For help call Shore Realty at 800-647-1868