Explaining Short Sales: What Buyers and Sellers Need to Know

Explaining Short Sales: What Buyers and Sellers Need to Know

While the market is hot, 'short sales' still occur when a homeowner needs to sell for less than they owe on their mortgage. In Massachusetts, these are complex transactions that require patience.

The Seller's Perspective

A short sale is often a way to avoid the credit damage of a full foreclosure. However, the bank must approve the final sale price, which can take months.

The Buyer's Perspective

• Pricing: You can often get a home in a town like Arlington for a discount.
• Patience: These deals can take 3 to 6 months to close.
• As-Is: Banks rarely pay for repairs or credits.

The 'Third Party Approval' Contingency

Any offer on a short sale is contingent on the lender's approval. Even if the seller says yes, the bank can still say no.