Why are real estate brokers selling so many 'short sale' homes in Portland? Probably because the name 'short sale' sounds intrigueing. Are these short sale homes a better deal than other homes on the Portland MLS or RMLS as it is correctly called? The short answer is occasionally. Problem is these take a long time to close and may never close so buyers have to be very patient and have a place to live in the meantime. Whatever the buyer offers the seller will always sign the contract. The mortgage holder will order a BPO(Broker Price Opinion) and sometimes an appriasal. If one of these comes in higher than the offer, then they will probably make a counter offer. There may be some wiggle room to reduce the price a little bit after that. That is all, so most of these short sale homes go for close to market value even after the long wait.
Benefits of Short Sale for the Homeowner:
1. Avoid foreclosure on credit report. A short sale will ding your credit report about 50-75 points. A foreclosure will ding it about 250 points.
2. Little to no cash out of pocket.
3. Sale of property for fair market value.
4. Avoid bankruptcy.
5. 1st Mortgage is settled in full.
6. Junior lien holder usually will go along.
Benefits of Short Sale to Lender:
1. Sale for fair market value.
2. Avoid forclosure expenses which can be as high as $125000 for them.
3. Avoid having to hold the property as an REO.
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