I am sure you have all heard the oxymoron about how short sales really aren’t that short. The banks seem to improve their processes, only until they end up slowing down again. Inevitably, their philosophy toward the liquidation of bad assets has fluctuated like the Dow tickers, and buyers approach the transaction without having a clue as to when, or even if, their settlement will occur.
The truth is that these transactions do actually close- it’s just a matter of when. It takes a while for the banks on the selling side to drive the file through their bureaucratic mazes, and then, they are forced to fit it into the latest Government regulations. Eventually, the buyer must start her end of the activities, which, if they are using financing, will most definitely induce more pain.
In the end, a short sale will be the source of a purchase at a much better value than it would be under normal circumstances, mainly because of the difficulty in completing the process. Those who stick it out until the end will benefit by having a home with immediate equity that will add substantially to their overall net worth.
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