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Michael R. Ginnaty

Margie and Mike Ginnaty
agents for DPR Realty
Mesa / Scottsdale, AZ

602-573-9000
Contact Us

What is a Short Sale?

Short Sale properties are listings that have not yet foreclosed. The bank has agreed to let the owner list and sell the property at a price that is less than the remaining balance on the mortgage. The bank absorbs the loss and the seller is “forgiven” the unpaid principle. The following points outline some of the risks involved in purchasing a Short Sale property:

  • In a Short Sale the bank approves the purchase price. Since the bank typically orders a BPO (Broker Price Opinion) only after an offer is made, the list price you see advertised in the MLS is almost always not pre-approved by the bank, and may be listed artificially low to attract offers.
  • Short Sale properties are listed “As-Is” and in most cases neither the bank nor the seller will provide any property disclosures, guarantee warranted items, or make any needed repairs. The buyer assumes nearly all of the risk pertaining to the condition of the home.
  • In a Short Sale the bank may take weeks or months just to respond to an offer. In the meantime, even though the buyer can take their offer off the table, the buyer could miss another purchase opportunity or see the value of the real estate market drop during the lengthy process.
  • In a Short Sale the bank has the right to foreclose on the property and sell it at auction, even after offers have been made and in some rare cases even after an offer has been accepted.
  • A significant number of Short Sale listings are in a situation where the seller has two or more mortgages. The buyer may get approval from the first bank, but not the second bank, in which case there is no contract even after the buyer has waited a long period of time for the first bank to respond.

Mike & Margie Ginnaty are professional Buyer’s Agents specializing in helping clients buy homes in the Greater Phoenix Arizona area. Contact Mike or Margie at 602-573-9000 or ginnaty@hotmail.com.

 

Margie and Mike Ginnaty | 602-573-9000 | Contact Us 

3850 E. Baseline Rd. #120, Mesa, AZ 85206 - Branch Office
14811 N. Kierland Blvd #700, Scottsdale, AZ 85254 - Corporate Office    
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