Pros And Cons Of Short Sales in Texas

Pros And Cons Of Short Sales in Texas

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Hundreds of real estate short sales are being closed each and every day in Texas.


Surprisingly, short sales are one of the most popular real estate niches. And it has remained relevant. Even though the discounts are not abundant, there’s still good deals. The key to successful shot-sale deals is finding properties where value can be created. If you can get the property at the correct price, then it balances off with effort and time. However, short sales are not for everyone. Because they require a long time commitment for work that could at times go for nothing.

Simply put, a short sale is a transaction in real estate where the lender allows the seller to sell for a less than what is currently owed. These deals gained nationwide popularity soon during the financial crisis. At that time, many homeowners owed more than the worth of their home. A loss on the sale is way better than a foreclosure. And it takes less time though comes with the following advantages and downsides.


  • Discounts: Properties that have the biggest issues typically have the greatest discounts. Once you have found a property and gotten the seller on board, you will need to present your case to the lender. This is why many people would pursue a short sale…the potential discount.
  • Bails Out the Seller: A short sale is often one of the last options before a foreclosure. Foreclosures should strike fear in you because they can stay on credit reports for four to seven years. And foreclosures can impact individuals ability to purchase a car, rent a house, and get a credit card. While a short sale still pops up in the report, it is much less severe than a foreclosure. In many circumstances, the seller will actually make a profit in a short sale.
  • Ability to Negotiate: During a short sale, you can influence lender’s decisions by giving out a cost for repairs. You should also provide the lender with comparable sales to support your suggested lower price.



  • Length of Transaction: The primary reason investors sour on short sales is due to the length of transactions. Average deals take 90 days to close and sometimes even months longer. It is common for a short sale to sit idly for many days and weeks.
  • Uncertainty: In a short sale, all parties involved need to be on the same footing. It’s not enough for them to be willing to take part in the sale because the lender must agree with your offer. Any errors and the deal is likely to be sent back to square one. This drives the uncertainty.
  • Paperwork: To get the short sale approved, the lender often underwrites the application in reverse. It begins by looking for reasons the homeowner cannot pay their mortgage. Lots of paperwork is needed before the lender does anything. And a missing form can stall the entire process.


Reimagine Realty Solutions

We at Reimagine Realty Solutions are investors in real estate. We can help when you are considering short selling your house or facing pre-foreclosure. We also offer support to families by beautifying their locales and buying from those who need to sell fast. Passionate and friendly about the way we work with our clients, you will always find our services to be straightforward and honest. Our prices are also fair and we close fast so why not get in touch with us. Call us at (512) 575-2222 or our website on

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