Some Buyers Pass on a Short Sale and Wait for the Foreclosure

When lenders are unreasonable, some short sale buyers find it easier to choose between a short sale or foreclosure.

Both situations can involve waiting a long time. When a buyer's agent submits a short sale offer to the listing agent, it is often a shot in the dark. Banks won't commit to a short sale until they see an offer, and buyers don't want to submit a short sale offer if they don't know whether the bank will accept it. Moreover, many banks take their ever-lovin' sweet time getting back to the buyer with an answer.

Sometimes that answer is the bank prefers to go through foreclosure, which means the bank is hoping for a higher price. Buyers might be better off waiting for the foreclosure and buying the home directly from the bank at a much lower price. That's because many short sales that turn into foreclosures eventually sell at much larger discounts . . . read more about Short Sale or Foreclosure.

More Articles by Elizabeth Weintraub:

• Reasons to Sell on a Short Sale
  
• Finding Short Sales
  
• Reasons to Avoid Short Sale Listings

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