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SHORT SALES |
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What a
"Short Sale" is...
In real estate, a short sale is when
a bank or mortgage lender agrees to
discount a loan balance due to an
economic hardship on the part of the
mortgagee. Extenuating circumstances
will delegate whether or not they will
discount a loan balance. These
circumstances are usually related to the
current real estate market climate and
the individual borrower's financial
situation. A short sale typically is
executed as an attempt to prevent a
foreclosure. A bank may allow a short
sale if they believe that it will result
in a smaller financial loss to them
versus foreclosing on the property.
Is a Short Sale a Foreclosure?
No, in a foreclosure situation, the
homeowner has fallen behind on their
payments and the bank then repossesses
the home and will attempt to sell the
home via auction or other means in order
to recuperate their financial losses.
The bank will then pursue the owners for
the deficiency amount from the sale.
How a
Short Sale happens...
When a seller owes more on their
home than the value, they are considered
to be "upside down". This means they will
be unable to sell it for what is owed
and they must be able to demonstrate that
the home cannot be sold for what they
owe. The owner will then attempt to make some
form of an arrangement with their lender
to sell the home for less money than is
owed leaving them with the
responsibility of paying the deficiency
balance.
How
Short Sales benefit investors...
Real estate investors will find that
buying homes before a foreclosure
sale is one of the most stable real
estate investing opportunities in the
country. There is a never-ending supply
of homes available and real estate will
never go out of style as every
consumer's desire for owning a home of
their own is everlasting. Although there
may be some repairs necessary and some
out of pocket expenses involved in
preparing the property for sale, the same basic
rule applies in real estate as in the
stock market - buy low, sell
high. |
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Request
Information on our Short Sale Packages
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