• Embed Doc
  • Copy Link
  • Readcast
  • Collections
  • CommentGo Back
Download
 
What is a Short S
ale and why you should have one done for you
by a Licensed Real Estate Agent 
 
What is a Short S
ale?
 
A Short Sale is a real estate transaction in which the revenues from the sale fall short of the balanceowed on a loan secured by the property sold. Short sales
 
have become the order of the day due to thefinancial hardships experienced by homeowners whose mortgages are upside down and can no longermake their mortgage payment for one reason or the other. Instead of letting the bank foreclose
and ruin
their credit, homeowners a
re now opting to do a short sale
.
 
Who Benefits from a Short Sale?
 
After a short sale, the home is sold to the buyer and the
seller
 
walks away without any cash
 
from t
he
sale; all proceeds go to the lenders and other credi
tors on title.
 
The main advantage of a short sale tothe seller is that he/she can avoid owing the balance of the loan and
 
also get to avoid the long termnegative consequences of a foreclosure on their credit.
 
The buyer
s advantage is clearly the prospect
s of ge
tting their new home at a significant discountcompared to what they might have paid for it a few years back. Buyers should be aware that the shortsale process often takes time and are required in most cases to purchase the property as is. In the e
nd,
the reward for being patient is a new
 
home at reasonable price.
 
Mortgage lenders benefit as well, they avoid the cost of a lengthy foreclosure process
. Most lenders will
agree to a short sale if the seller can prove that they are financially insolventandalso if the lender ismade to see that it
s in their best interest to take the discount now instead of taking the property backafter a foreclosure
 
and then trying to sell it for less than what they can net right at the moment if theyapproved the shor
t sale
.
 
The
Short Sale Process
 
The paperwork required can be quite daunting and laborious to put together but if done properly by anexpert, the short sale will get approved by the lender in a short
er
 
period
of time and surely benefit
all
parties involved. The short sale process will differ for each lender but in summary it will usually work asfollows:
 
1) Lender is contacted to discuss the possibility of a short sale.
 
2) The seller gathers all the paperwork that the bank requires and shows proof of financ
ial hardship.
of 00

Leave a Comment

You must be to leave a comment.
Submit
Characters: ...
You must be to leave a comment.
Submit
Characters: ...