Our real estate market is still challenging, but the activity seems to be improving.  Currently the East Idaho Real Estate market has an increased number of distressed properties (Bank-Owned, Short Sale Properties).  The blunt truth is they make up around 48% of our current market.  Buyer should be taking advantage of some of the great buys on bank owned properties as well as short sales.  There seems to be a stigma that goes along with short sales, there are the horror stories of those buyers who waited over a year to to close on a short sale.  I wanted to explain a couple things, first what is a short sale and second the process and whether you should consider buying one.

Short SaleA short sale is simply when a property is being sold short of what is still owed on the property.  There are 3 parties to the transaction, the buyer, the seller and the lender. 

The seller still is the person who signs and negotiates the offer which is subject to the 3rd party lender approval.  The approval times greatly are affected by which bank has the loan and the competence of the real estate agent working on the transaction.  Buyers can typically buy a short sale property 10-20 below market value.  It has been my experience that the process can take anywhere between 24 hours to 3-4 months. 

With the market changing and prices adjusting it is necessary for sellers who are in a bind to sell the property as a short sale vs letting it go through the foreclosure process.  Sellers can click here to read more about the process and what is required.

If you have additional questions,  please contact me