Answer
May 22, 2018 - 07:42 PM
Short Sale
A short sale is a sale of real estate in which the net proceeds from selling the property will fall short of the debts secured by liens against the property.
In other words, when a mortgage becomes too burdensome or payments are more than homeowners can afford to pay, they have a few options to rectify the situation. A short sale occurs when a home is sold for less than the balance owed on the mortgage.
If all lien holders agree to accept less than the amount owed on the debt, a sale of the property can be accomplished.
A short sale is not a foreclosure
A short sale is a transaction in which the bank allows the delinquent homeowner to sell the home for less than what's owed. A short sale doesn't absolve the borrower from the debt he or she incurred with the original mortgage, but it can be better than a full-on foreclosure.
Buying a home that is a short sale is different from buying a property that is actually owned by the bank, known as a real-estate owned or (REO) property, or a property that is in foreclosure.
Is it a good idea
Buying a Short Sale is a good idea because you're able to purchase a property at market vaule or sometimes 10% below market value. Many people are not selling their homes right now because the values are low. But in many cases, the only options for a buyer is a short sale or a foreclosure.
As you might have guessed, many people take the loss in a short sale rather than let the bank repossess their property in a foreclosure.
A short sale is a sale of real estate in which the net proceeds from selling the property will fall short of the debts secured by liens against the property.
In other words, when a mortgage becomes too burdensome or payments are more than homeowners can afford to pay, they have a few options to rectify the situation. A short sale occurs when a home is sold for less than the balance owed on the mortgage.
If all lien holders agree to accept less than the amount owed on the debt, a sale of the property can be accomplished.
A short sale is not a foreclosure
A short sale is a transaction in which the bank allows the delinquent homeowner to sell the home for less than what's owed. A short sale doesn't absolve the borrower from the debt he or she incurred with the original mortgage, but it can be better than a full-on foreclosure.
Buying a home that is a short sale is different from buying a property that is actually owned by the bank, known as a real-estate owned or (REO) property, or a property that is in foreclosure.
Is it a good idea
Buying a Short Sale is a good idea because you're able to purchase a property at market vaule or sometimes 10% below market value. Many people are not selling their homes right now because the values are low. But in many cases, the only options for a buyer is a short sale or a foreclosure.
As you might have guessed, many people take the loss in a short sale rather than let the bank repossess their property in a foreclosure.
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