Josh and I have been heavy into the house-hunting process for the last couple of months. Just last Saturday, we found a house in Sherwood that we absolutely loved. Even our realtor, who is very particular (that's a good thing:-), said that it suited us very well and is very fairly priced. So...we decided to go for it and put an offer down. It was so exciting! I could barely sit still while we were signing the papers. Once the offer was submitted, however, we found out that it was actually a short sale and that the seller's agent hadn't put that into the original listing (it had literally just gone on the market the day before we looked at it). I'm not entirely sure how long short sales have been around, but they are becoming more common recently because of the economy and housing market, so if you know what they are, you can skip the next few sentences:-)
Basically, they are something that the bank decides to do for home owners who, for whatever reason, have gotten in over their heads with their house payments and want to get out with as little damage as possible to their credit. The bank allows them to sell the house for less than what their loan was (they basically have to since housing prices have dropped) so they can get out of their debt and the bank only takes a small loss. It's basically a slightly better alternative to a foreclosure; it costs the bank less money and doesn't damage the owner's credit as badly as a foreclosure would. The good thing about short sales for the buyer (AKA, us) is that they can often get a pretty good deal (which explains why this house was priced so well in the first place), but the not-so-good thing is that it can be a MUCH longer wait because after the seller approves the offer (which has just happened for us, so that's good) the BANK has to approve it and that can be a much trickier ball game.
Luckily, this particular seller has hired a short sale negotiator, which is someone who specifically specializes in working with the banks to get short sales moving as quickly as possible. Our realtor told us this is a very rare but good thing; oftentimes the buyer has to pay for a negotiator themselves if they want to move the process along faster, but this seller and their agent clearly want to get this house sold as quickly as possible. Plus we were the first (and so far, the only ones) to get our offer in and according to the negotiator, the offer is not hugely less than what the loan was; sometimes in short sales, it's HUGE difference, which makes the banks hem and haw even more because they don't want to lose too much money.
So, that is where we are right now. It's kind of ironic because we were trying to avoid short sales because we heard about what a pain they can be, but now we've walked right into one without realizing it:-) But we really love this house and are willing to wait it out for awhile and see what happens. Luckily, we are contractually able to pull out at any time without any financial responsibilty before the bank makes their decision, in case we find another house we like even better. But...I must admit, I REALLY like this one:-)
We will definitely keep you posted about this exciting and interesting time. We are hoping that it works out in our favor, but we also aren't sweating it because we know that the Lord has us and this entire situation in the palm of His hand and that He is taking care of us. No matter what happens, it won't be a surprise to God and we know it will be for the best. Praise Him for that!