Buyer's Group Warns Of Short Sales
The president of the Massachusetts Association of Buyers Agents is warnings consumers that short residential sales - which occur when an "underwater" home is sold before it's foreclosed on - come with many complications and often times are not finalized.
MABA President Sam Schneiderman said that based on analysis he has done, between 30 and 50 percent of short sales in some communities do not close.
A short sale requires the banker, lender or mortgage holder to accept less money in the sale of a property that what's due on the mortgage. Because lenders take a loss on the property, many are unwilling to negotiate short sales.
"There's this excitement, this fantasy about short sales, because they appear to be good deals, but the reality is quite different and consumers need to beware of the challenges and difficulties associated with these transactions," Schneiderman said.
If a consumer does pursue a short sale, Schneiderman recommends working with a registered buyer's agent and someone who is familiar with the fair market value of the homes.
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