Is a Short Sale a Preview to a Foreclosure?

I was speaking to an investor this week and when I mentioned that we should be looking at short sales in the luxury market, her response was that in her opinion, a short sale was simply a preview to a foreclosure.  Her implication is that short sales are not worth the time versus the savings that they produce.  My team record is a  Philadelphia short sale that resulted in a savings of $120K under what the bank was owed.  That particular case is definitely the exception, most short sales result in an average of 20% savings below market value.  This demonstrates a real savings over market value, if you are willing to wait for the bank to perform its due diligence (foot dragging.) Make no mistake, a number of short sales do end up going to foreclosure for various reasons; however if you have a seasoned agent that has experience, persistence and the willingness to deal with the bank, you can make excellent investments or in some cases actually purchase a property with equity.  So while some short sales do go to foreclosure, contact our team, we can usually, not always, tell within a day or two if the short sale is worth pursuing. There are currently 300 short sales available in Philadelphia.  Please contact us if you think that this makes sense for your real estate needs.  Jackbarry@kw.com