The Post Falls Short Sale market is considerably smaller than the Spokane Short Sale Market. With only 67 Short Sales listed as Active in Post Falls as of 12/11/2009 versus 199 in the Spokane Market (city of Spokane only.) there’s a big diference.
What exactly is a short sale?
A Short Sale is a sale in which the proceeds of the sale will not cover the liens on the property (most of the time the Mortgages), a payoff must be approved by the affective bank allowing the transaction to close short.
For instance, say a Post Falls home purchased in 2008 for $199,000 is now forced to sell in 2009 for a reduced market value – lets say $169,000. It’s very likely that the owners of this Post Falls Home still owe over $180,000 and with commissions and closing costs, the bank won’t realistically net more than $130,000. In a Short Sale Negotiation – we’ll work with the bank to get the reduction approved, your home sold and you on your way.
Sounds too good to be true?
There are some things to consider. In SOME cases the bank can seek a deficiency judgement (come after you for the difference they came up short). This isn’t ideal, but is sometimes a by-product of a short sale. Each bank is different, but we try to make every effort to ensure that it won’t happen.
A second consideration is time – it can take up to 6 months or more to get a response on a short sale from a bank, so be ready to wait.
Third, and this is where I get the most questions – it WILL affect your credit. Many experts claim that it will not affect your credit as much as a foreclosure, but each person’s credit profile is different – it’s advisable that you speak to a competant Real Estate Attorney.
Interested in a short sale, or do you need to Short Sale your Post Falls Home? Contact us! (208) 699-7390 We look forward to working on your Post Falls Short Sale.