A short sale, also known as a pre-foreclosure sale, is when you sell your home for less than the balance remaining on your mortgage. If your mortgage company agrees to a short sale, you can sell your home and pay off all (or a portion of) your mortgage balance with the proceeds.
One of the benefits of buying a short sale is that the bank is typically willing to accept less money for the property because of the time and risk involved. So you generally are getting the home at below market value. If you have the time to wait, a short sale is a good way to go.
Read on to learn about short sales and deeds in lieu, the differences between the two, and how arranging one of these options could help you prevent a foreclosure. Short Sales. A short sale occurs when a homeowner sells his or her home to a third party for less than the total debt remaining on the mortgage loan.
Short sales occur when a property gets sold for less than is owed on it. They are called "short sales" because the proceeds of the sale come up short. short sales are usually negotiated with lenders in advance and typically are conducted in lieu of having a property go through foreclosure.
· A short sale is the process of selling a home for a price that won’t cover the cost of the outstanding mortgage. It’s a disheartening situation for sellers who find themselves in financial.
By virtue of working with the chapter 7 trustee, mortgage lenders can derive all the benefits of a short sale, on a faster timetable when the same short sale might not have otherwise been feasible outside of the bankruptcy court. Time Really is money. empty homes result in declining of values. This is a major concern for mortgage lenders.
Short sales and foreclosures. Both short sales and foreclosures are usually the result of a borrower’s inability to continue making mortgage payments. A short sale is where your mortgage lender allows you to sell the home for less than your outstanding loan balance and cancels your obligation to repay the remainder of the loan. With a foreclosure,