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. Often the seller offers their short sale home a little below market to attract several buyers in a bidding war. This helps the seller to have at least one buyer left standing at the end of the long closing process. 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. I meet the BPO brokers when they come to evaluate the home to give my buyers a better chance that the value they associate with the home is closer to the buyers offer amount.
Benefits of Short Sale for the Homeowner:
1. Avoid foreclosure on credit report, therefore you will be eligible to buy a new home faster.
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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