More properties today are being sold as short sales. I've written an article in the upcoming North Beach Sun about this new type of sale that is becoming more and more common. Here's a small exerpt from the article:
What is a short sale? A short sale occurs when a property’s net market value is less than the loan amount and the seller will not pay the difference at closing. For example, if a seller will net $500,000 on the sale of his/her property and the loan balance is $600,000 then they are $100,000 short. Besides the seller bringing $100,000 to closing there are two common ways to get this property to close. The bank can lend the seller the difference owed or the bank can take a loss. Having this third party involved in the sale complicates things because the bank may have different interests than both parties.
The local Realtor association is having a educational meeting this Friday to help agents get a better grip on this subject. They asked me to moderate this meeting and I am sure I'll learn more about short sales there. I'll be sure to post what I learn next week.
About Me
- F Jeffrey Scott
- I have been working in the Outer Banks real estate industry since 1989. During that time I have either directly or indirectly helped buyers and sellers in over $750 million in Outer Banks real estate transactions. Also I have served as the president of the Outer Banks Association of Realtors and been the Association Realtor of the Year two years in a row.
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