Short Sale is a sale of real estate in which the money from selling the property is less than the balance owed on the property and is an alternative to foreclosure.
A Short Sale is when a lender agrees to take less than what is owed and allows homeowners to sell their property because they are facing financial hardship. It is when a bank agrees to accept less than the total amount owed on a mortgage to avoid having to foreclose on the property.
A Short Sale helps the bank preserve losses and helps the home owner maintain their credit. It is often used as an alternative to foreclosure because it mitigates additional fees and costs to both the creditor and borrower. It is likely to damage the sellers credit to some degree but not as badly as a foreclosure will.
Short Sale Real Estate Deal
A Short Sale also provides a great opportunity for a potential real estate buyer. It can be a very good way to find the home you want at a lower price than similar properties for sale in the area and a short sale can often be beneficial to all those involved – they buyer – the seller – and the bank
How a Short Sale Works
A Short Sale can be more complicated and takes longer than a normal transaction. It can be an excellent solution for homeowners who must sell and owe more on their homes than they are worth. A Short Sale helps you avoid the stigma of foreclosure. It is another option for troubled homeowners and also less expensive than foreclosing on a property. A Short Sale is typically a better option for the lender as well as the seller as it can be conducted even if the person has not defaulted on their mortgage.
A solution for a property owner that is better than foreclosure, can be a satisfying resolution for all parties, say many real estate professionals. A Short Sale helps the lender to avoid yet one more foreclosure home on their books. An alternative to bankruptcy – it is considered a collection activity which is prohibited in bankruptcies. A short sale also helps home owner in financial difficulty. A short sale is one real estate transaction where getting help from an experienced agent or attorney is advisable.