4:52 AM
Carole
I have always had a fascination with the English Language and having studied linguistic anthropology I became even more interested and even a bit amused. Did you ever think about the way we say things like "how much does that run," when what we really are trying to ask is how much does the item cost? Why do we do that?
American idioms are a great source of entertainment- we use phrases and words in ways that native speakers typically understand without thought but are completely confusing to the non-native speaker. We say things like, "lipstick on a pig." I get the idea behind it - a quick fix to make something seem more attractive than it is... but really? Who had the chutzpah to put lipstick on the pig and did they really think it made the pig better looking? I wish I could have seen this little event- I can't even successfully give my cat a pill- I can't imagine getting the pig to hold still long enough to get a lovely shade of mauve applied to it's whiskery mouth. Perhaps my vision of applying the lipstick to the pig is too grounded in the literal or concrete ...but still what a fun visual.
In all fairness, I have to say that even though we have tortured the language with our slovenly grammatical habits and imprecise use of words, the language has never been all that clear. We have always had multiple meanings for words, and much of spoken language is contextual and non-verbal. We say the word "bear," which sounds just like "bare," and from the context of the sentence we determine which version of the word is being referenced and apply meaning to the sentence- all in the blink of an eye without even conscious thought. But what about when we get confused about the the meaning? Like the term "short sale," which is a source of great confusion for native speakers and non-native speakers alike.
The popular misconception is that a short sale will move through the transaction process and close more quickly( shortly in terms of time if you will), which it will not. A short sale is perhaps the longest transaction a buyer and seller can experience. The term "short" comes form the idea that the seller in this transaction is asking their lender to release their interest in the property. their lien, for less than the full amount that is owed- in effect allowing the seller to sell the property "short." There are a lot of component parts in these transactions: the seller must answer the question of why they stopped making payments or why they feel that they will no longer be able to make payments and they must demonstrate a true hardship. If they are able to do this then the next step is to establish the value of the property- or asset as it is known. The seller's lender will generally order a BPO (Broker Price Opinion) to get a guideline. After which, they may order an appraisal or another BPO. Once the lender is satisfied with the value they will respond to any offer that is on the table. There a lot of misconceptions about this portion of the transaction as most banks will not respond to a seller's request to short sale until they have an offer in hand- then they will evaluate the seller's docs and the buyer's offer. If the seller has a failed offer then they can honestly say their short sale has been approved, but it is important to remember that each offer is evaluated on its own merits. Just because a short sale was accepted at a certain price previously, there is no guarantee it will be again.
All of this verification of seller status and asset value can take a while so the informed, "would be short sale purchaser" should plan on 30-60 days to get a response to their short sale offer. Once agreement is reached on the offer price the bank will typically give a 30 day window in which to close with a per diem amount payable by the purchaser for any delays in closing. When contemplating purchasing a short sale properties there are additional considerations:
- Short sales are never guaranteed, neither to the seller, the buyer nor even the agents
- Contrary to popular belief banks do not have to accept a short sale- they can opt to foreclose, take ownership of the asset and do with it as they please.
- If a bank participates in short sales it is as a courtesy to the borrower
- If you decide to write an offer on a short sale property- do not get married to the idea- your odds of getting it are much narrower than on other types of transactions including REO properties, which are already owned by a bank.
