Short Sale explained – A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property’s loan. It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the current debtor.
Both parties consent to the short sale process to avoid foreclosure. This allows the bank to avoid the fifty fees imposed and the borrower to salvage his credit rating. The lender determines the final price the home will sell for. The owners must sign all of the paperwork.
Short Sale Explained – Disadvantages to a Short Sale verses a Foreclosure
There is no disadvantage to have a short sale compared to foreclosure. Like a foreclosure you cannot make any money during the process. Your lender may pay you to relocate and if you owe any back taxes to the State, Federal Government, or County and there are liens on property for the the unpaid taxes.
Short Sale Explained – Advantages to a Short Sale verses a Foreclosure
There are several advantages to have a short sale verses walking away from the home and and allow your lender to foreclose on the home.
- It helps your credit History
- There is often less time you you need to wait before buying another home
- Your lender pay pay for you to relocate or move to another home or rental.
- Your lender will pay off any leans you or past taxes that you may owe.
Overall the benefits of of committing to a short sale will out weigh foreclosure. I have listed several homes over the years and can help you with the process, I will talk with your bank and make all of the arrangements. All you have to do is sign all of the documents I provide you and I will take care of everything else.
If you have any questions feel free to call me at 805-270-5860 or e-mail David@DNorwood.com