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AMY: It's not short, it's not quick. It's a very long process, and what it is is when
the homeowner is in a financial situation where they need to sell their home, but in
order to do so they are not going to be able to make enough money, sell it for enough,
in order to pay off their mortgage, so basically they're coming up short on that mortgage payoff
and that's why it's called a short sale.
TOM: When you put an offer in on a short sale not only does it have to be approved
by the owner of the home but it also has to be approved by the lien holder or the mortgage
holder of whoever owns the home at the time.
CHRIS: You can buy a home substantially under market value. If time is on your side and
you're willing to wait it out and potentially lose a property that you have a bid on, even
after waiting six months or longer, and still not get that property--if you're flexible
on time, if you're flexible on the property--it could be great.
CHRIS: One of the problems with short sales is most lenders will leave that property open
for other offers, even if the seller has accepted your offer, the lender can reel in multiple
offers even if the seller has signed a contract to accept your offer contingent on the bank's
approval. So, you could be outbid in month seven after waiting for seven months.
TOM: The most important thing that I would say for when dealing with a short sale is
to get with an agent or a realtor that has some experience with short sales, and can
guide you through it, because they can be confusing, they can be frustrating and they're
not something that you're maybe going to be able to figure out yourself.