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        <title>Indianapolis Real Estate Blog</title>
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        <description>A local Indianapolis real estate blog by Red Door Real Estate keeping you up to date on all Indianapolis and surrounding areas real estate news.</description>
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            <author>mtaylor@reddoorindy.com (Mike Taylor)</author>
            <title>Indianapolis Short Sales Explained</title>
            <description> <![CDATA[ 
I am finally writing the most overdue blog post EVER, the long winded answer to the question I probably get asked most often: What is a short sale?&nbsp; Quite simply, a short sale is when the owner of a property owes more than the house is worth and they ask the bank to accept an offer less than this amount in lieu of going to foreclosure.&nbsp; For example, a seller has a houses listed for $100,000 and they owe $125,000 on the mortgage.&nbsp; They receive an offer from a prospective buyer for $90,000 and ask the bank to take a loss of $35,000 instead of taking the home to foreclosure, re-listing it, and selling it themselves.&nbsp; Sometimes it works and sometimes it does not. &nbsp;

Now, the gory details.&nbsp; If you are the buyer or potential buyer of a short sale you MUST know what you are getting into or you are setting yourself up for a very frustrating experience.&nbsp; I usually tell people, depending on any number of variables it can take anywhere from 2  10 months to close on a short sale from the time you make your original offer.&nbsp; Why so long and why such a huge difference?&nbsp; Every deal, bank, and asset manager is annoyingly unique and each has their own idiosyncrasies that can greatly affect the amount of time it takes to close a deal.&nbsp; Here are just a few variables that can affect the time frame of the short sale:

-&nbsp;&nbsp; &nbsp;Is there one mortgage or are there two?-&nbsp;&nbsp; &nbsp;If two, are they with the same bank?-&nbsp;&nbsp; &nbsp;Is there a PMI company involved?-&nbsp;&nbsp; &nbsp;Is this a FHA loan or conventional loan?-&nbsp;&nbsp; &nbsp;Are you the first offer to be submitted?-&nbsp;&nbsp; &nbsp;Do you have a negotiator?-&nbsp;&nbsp; &nbsp;Who is the bank?-&nbsp;&nbsp; &nbsp;Is the listing agent experienced with short sales?-&nbsp;&nbsp; &nbsp;Is the asset manager in a bad mood? 

The list goes on and on and on.&nbsp;&nbsp; As you see, the amount of variables that affect the short sale process are mind boggling.&nbsp; One of the most frustrating parts of dealing with the short sale is the absolute uncertainty and lack of answers.&nbsp; Once you submit your offer, it could take weeks or even months for the bank to respond to you.&nbsp; All the while you have no idea what is happening or even if they will consider your offer.&nbsp;&nbsp; Assuming you get through this process and agree upon a price, the next process of getting from contract to the closing table can be and usually is excruciatingly s-l-o-w with little or no updates along the way.&nbsp; Eventually you can close on the short sale, but you must know what you are getting yourself into and be very flexible with your timeline in order to make a short sale purchase a success. &nbsp;

The importance of having an agent on your side that has experience with and understands how to best navigate through this sea of red tape cannot be underestimated.&nbsp; We at Red Door, unfortunately:), work with tons of buyers and sellers in short sale situations and can help you through the process.&nbsp;&nbsp; Contact us at 317-733-3667 or submit or contact form to discuss short sales in Indianapolis further. &nbsp;
 ]]> </description>
            <pubDate>Tue, 19 Oct 2010 14:13:24 -0400</pubDate>
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