Short Sales in Real Estate in and around Jackson Hole

When these two words "Short Sales" come up most people think about department stores selling off merchandise after or before a holiday. In our new Jackson Hole Real Estate market with volatile home financing it takes on a totally new meaning. In the new marketplace, homeowners find a nice piece of land surrounded by everything they have always dreamed about. Many of our buyers want to be located in a nice new future Resort Community which will have Golf, Swimming, Fitness, and hiking trails all around throughout the mountains around the location.

With nice choices and possibilities of having a new home in a golf community, a buyer then goes to their local banker and applies for a construction loan wrapped around the lot purchase on a short term basis. Due to their good credit the buyers may easily qualify for a loan of one million dollars to build a home on a lot. The buyers have sought advice and have been told by several different people who could be considered “experts” in the Real Estate Field that if they ever decided to they could put their home on the market and have several offers probably before the last Construction draw was taken down and make a handsome profit!!

A year later the home owners are completely focused on picking out the granite countertops, paint colors and carpets for their new dream home and list the property with a profit in it. The construction loan expires and the bank now wants to put permanent financing on the home.

However, during the building process, the new marketplace has fallen dramatically and the new appraisal shows the home is worth less than what they have into it. We in the Real Estate Industry call this “being upside down” on a property whereby more is owed on the property than the appraisal comes in for. This is what leads to the short sell whereby the bank and owner work through the reality of the situation or the bank forecloses the property.

If you have comments or questions about short sales we certainly welcome them…….we look forward to hearing from you

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