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I have written this article to dispel confusion with Short Sale and Foreclosure listing price difference. I hope to set the expectations straight as you shop for the best deal in town. The home you sent on Gold Ct is a SHORT SALE. Let me know if you want to see it today. I need to schedule time with the occupant.

There are many homes listed as ACTIVE on MLS which are underpriced, but lenders will counter back with a realistic price. So, do not be carried away with low listed price for SHORT SALE HOME.

The field SPECIAL LISTING CONDITION will show whether the home is a Short Sale or not

Item	Short Sale / Pre-Foreclosure	Foreclosure / REO
	A short sale means the seller's lender MIGHT BE accepting a discounted payoff to release an existing mortgage.	Bank is now the owner of the home. Bank sells the home thru an asset manager
Listing Price	Unrealistic price in 99% of the cases. Why? Listing Agent / Seller come up with the list price – may list it low just to get some offers, but all offers will need Lender approvals	Close to realistic purchase price Why? Bank/Seller already knows the value (since they ordered BPO as the home was going thru foreclosure)
Approval Factors	Multiple points of failure. Seller’s Financials Borrower’s Hardship Story Value of Offers submitted Approval from all lien holders	ONLY ONE: Value of Offers submitted
Approval Process	Gone are the days when banks accept 50% discounts. They are smarter and organized now. Here is the process now... 1. Lenders order up to 3 independent appraisals (also calls BPOs means Broker Price Opinion) 2. Banks compare the median/average BPO/appraised value to the received offer and either REJECT or COUNTER BACK 3. The process could return a sticker shock to buyers who have submitted offers, based on listed price	1. Asset manager (bank) will review all offers and will either REJECT or COUNTER BACK 2. Most asset managers require listing agents to wait for 48 hours to collect all offers.
Warranties	Most sold AS-IS	Most sold AS-IS
Closing time / Wait time	Unknown (could be months) – depends on.. 1. Seller’s responsiveness to bank’s request for financial information 2. All mortgage lenders signing off an approval 3. Bureaucratic process time lag with each lender	Typically 30 days, since property is ready for buyer

These are the reasons why we separate and distinguish SHORT SALES versus FORECLOSED homes. Hope it helps.
As always, call or send me an email if you need more clarification.

Kiran Vedantam
602 550 4842

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IMPORTANT NOTICE: Kirans and Associates Realty is not associated with the government, and our service is not approved by the government or your lender. Even if you accept to attempt a Short Sale using our services, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit rating.

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