What is a Short Sale In Real Estate?
What is a Short Sale In Real Estate? www.reimaverick.com What is a short sale in real estate? A short sale in real estate is when the bank takes a short or discount on the original mortgage note in exchange for a quick, cash sale. By discounting the note, the bank will create equity in an otherwise unattractive property and an investor or new home buyer will then be able to purchase an otherwise unobtainable property. The process of a short sale in real estate takes a great deal of time and effort from both the bank and from the REALTOR or investor working on the short sale, as they have to negotiate to determine the amount of discount that will be taken on the note. Why would a homeowner want to do a short sale? Homeowners that are behind in payments, have a house in need of repairs that they cannot afford to fix, or homeowners that owe more on the house than it is worth (the home is underwater) are the best candidates for a short sale. If the current economic condition of the house match the criterion listed above, then a short sale in real estate will be the only way to sell a house without going into foreclosure. A short sale is a better alternative than declaring bankruptcy and having their homes foreclosed on. The consequences of these two options can many times lead to lawsuits, ruining of credit, and even IRS problems. A short sale performed correctly by a real estate professional can alleviate a great deal of the stress and pressure caused by this situation …
In real estate terms, a short sale is when a seller attempts to sell their own for less than what they own on the mortgage because of financial hardship. Discover the lengthy steps involved in a short sale with information from amortgage specialist in this free video on real estate. Expert: Stetson Lowe Contact: stetsonlowe.typepad.com Bio: Stetson Lowe is a credit repair expert. Known as the “mortgage insider,” Lowe assists increasing credit scores for the most challenging of clients. Filmmaker: Paul Kersey