Short-Sale explained (SS) – Distressed real estate in which the 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 SS 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.
Disadvantages verses a Foreclosure
There is no disadvantage to have a SS 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.
Advantages verses a Foreclosure
There are several advantages to have a SS 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.
Conclusion
Overall the benefits of of committing to a SS 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
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DAVID NORWOOD-CENTRAL COAST REAL ESTATE – VIDEO TOURS
Out of Town and you want to receive more information or more photos of a home you think you love. Give me a call at 805-270-5860 and I will be happy to provide you with a video of any home you like. When completed, I will upload your private video to YouTube.