A short sale is when a mortgaged property owners tries to sell the property for below the amount that is owed to the lender. In these deals the owner can accepts an offer which is then submitted to lender or bank for approval, this is where negotiations with the bank begin. Short sale deals can take months even up to a year to close, and many short sales will even fail when banks foreclosure on homeowners whom have defaulted on payments.
Due to the many homeowners that bought in the previous height of the Malibu real estate market at outrageously high prices that have since come down there has been a small percentage of short sales in Malibu. Homeowners are walking away from big mortgage payments by trying to short sell their homes and avoid possible foreclosures.
Malibu Short Sales typically receive multiple offers when listed and sell over the asking price. Many buyers have bought incredible deals in Malibu on short sales, but patience is key because these deals can drag on forever as banks aren't very easy when it comes to dealing with a loss on their loan.
If you're one of the many overleveraged homeowners unable to keep up it is definitely recommended to explore short sale possibilities to avoid foreclosure. If you're interested in speaking about some of your potential options at this time please contact me.