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Is a Short Sale Home in Albuquerque Right For You?

If you’ve been in the market to buy a home in Albuquerque for any length of time, you may have come across some homes for sale that are short sales. These are homes that are being sold at a price that’s lower than what the current owner owes the their lender. How does a short sale work, and is it a good deal for you?

How does a short sale work?

When a home owner has problems paying off their mortgage, they can often put their home up as a short sale. At this point, they have to sell the home for less than the balance on the mortgage.

The only other option for that homeowner would be foreclosure. That’s what makes a short sale a good option, as the bank avoids having to foreclose on the home, and the seller can get out of the deal without too much damage to their credit.

What are the conditions for a short sale?

The factor that precipitates a short sale is a drop in the house price by at least 20%. The homeowner no longer has equity in the home. However, they have no choice but to continue paying the mortgage. When they can no longer do so, it’s time to get help.

Before the homeowner can contemplate a short sale, the lending institution must approve. The bank is likely going to lose money in the process, so it needs to weigh in on the decision. Documentation must be presented that shows a short sale as the best option for all parties involved.

Should you buy a short sale property in Albuquerque?

Buying a home at a reduced price seems like an obvious choice. But be prepared for a lengthier process, as it requires more paperwork than a normal sale. It can take up to four months to complete the sale.

Getting the help you need

When you find a short sale property you’re interested in, your agent will help you with doing research on the property and making sure all the paperwork is in order.

You’ll then make an offer on the home, much like at an auction. It may be the case that another buyer outbids you. You will have the option to raise your bid if your finances allow you to.

Keep in mind that even though a short sale may seem like a good deal, you should weigh the pros and cons of the home you’re looking at buying. If the homeowner was having financial difficulties, they may not have been able to keep up with maintenance as well. A home inspection will reveal any of those potential issues.

If the home does need a lot of work, the cost of that work may wipe out whatever you saved on the price of the home. And if you need to move immediately, a short sale may not be a good idea, as the process takes a while to complete.

Join us twice a week on our blog for more real estate advice and great reasons to buy a home in Albuquerque and the surrounding area. Follow us on Facebook for the latest Albuquerque real estate updates. Looking for the perfect home for sale in Albuquerque? Our easy-to-use home search tool can help you start the process. Contact us today to help you buy or sell your next home in Albuquerque.


5910 HANNETT Avenue NE, Albuquerque, NM 87110  $208,000

3 Bedrooms / 2 Bathrooms (1 full, 1 half) / 1885 Square Feet

Terrific location close to Uptown, shopping, dining, parks, UNM! 3BDR/2BA/1CG! Versatile floor plan with 3 living spaces; combined living & dining space, separate hobby/office/bdr, plus large family room/den with cozy wood fireplace. NEW ROOF (2017-1018) Updated furnace (2017) Newer water heater! Lots of light, skylights, ceiling fans, separate utility room! Kitchen features new gas stove, lots of cabinets, tile floor, breakfast bar and is open to the dining room. Outdoor living space with covered patio and walled for privacy and storage shed.

Contact the Sandi Pressley team for additional details! 

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Sandi Pressley

Albuquerque New Mexico Real Estate YOUR SOURCE FOR ALBUQUERQUE REAL ESTATE! Sandi Pressley offers unparalleled service to ALL clients in Albuquerque and surrounding communities in the New Mexico real estate market. Sandi's motto is "Putting You First." Your complete satisfaction with our service and representation is our number one priority. As a native of Albuquerque, Sandi Pressley has been dedicated to serving her client's real estate needs for over 45 years. Sandi has achieved a goal unprecedented by any other Realtor of being the #1 Top Producing Realtor for 38 consecutive years in all of Albuquerque as well as the entire state of New Mexico. She is also the #1 Top Producing Realtor for the entire Western Region and 8th in the Nation with Coldwell Banker National. Sandi Pressley serves the entire Albuquerque New Mexico real estate market including the surrounding communities such as Rio Rancho, Placitas, Corrales, Bernalillo, Northeast Heights, North Albuquerque Acres, Sandia Heights, High Desert, Foothills, Four Hills, UNM, Nob Hill, Ridgecrest area, Uptown area, North Valley, Northwest Heights, Paradise Hills, South Valley, Southwest Heights, Bosque Farms, Los Lunas, Cedar Crest, Tijeras, and all East Mountain areas. Whether you are considering buying a home, selling a home or both, we know these areas inside and out.

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