“It gave them an opportunity to get more for their money,’’ said Dan O’Connell, an agent with Remax Prestige in Dracut, who is working with the Leferrieres to secure their dream home: a three-bedroom Colonial just across the street from the duplex apartment the couple is now renting.
Real estate agents in Boston’s northern suburbs are reporting an uptick in the number of short sales as lost jobs and falling home prices force many struggling homeowners to sell their properties at a loss.
A short sale occurs when a lender allows a homeowner who is experiencing hardship to sell the property for less than what is owed. Often, short sales benefit both the homeowner and the bank, since a house will typically sell for more in a short sale than a foreclosure.
The bank recoups more of its money and avoids the hefty legal bills and maintenance costs that follow a foreclosure. The homeowners avoid the embarrassment that a foreclosure proceeding can cause, and minimize the harm to their credit rating. Often, they can negotiate to have the balance on their mortgage forgiven.
But the biggest beneficiaries in a short sale can be the buyers. Often, they can scoop up a distressed home for a rock-bottom price, checking off more items on their wish list without increasing their budget.
Of course, there’s a catch: The short sale process can be time-consuming and frustrating.
The Leferrieres submitted a full-price offer of $220,000 for their neighbor’s Colonial, which had originally been listed at $239,900. Their offer was accepted by the seller in July, but the couple is still waiting to hear if the bank will sign off on the sale.
“The waiting is the hardest part,’’ said Danielle Leferriere, 26, a first-time homebuyer. “I’ve already started to decorate the house in my head.’’
Nationwide, 102,407 short sales were recorded in April, May, and June, according to RealtyTrac, an online marketplace for foreclosed homes. Short sales accounted for 12 percent of all home sales during that period.
