What is a Short Sale?
A Short Sale is an agreement with a lender to accept less than the amount owed by a borrower via the sale of the property to a third party. With this agreement, the lender releases the borrower from the mortgage, thereby preventing foreclosure. A short Sale is also known as a short payoff or a pre-foreclosure.
Short Sales provide an excellent, win-win solution for the distressed homeowner and their bank. The homeowner avoids a foreclosure on their record and the bank avoids the effort and expense of prolonged foreclosure process.
Benefits of A Short Sale to the Seller.
A Short Sale allows the homeowner to sell the property and remove the secured debt or lien associated with the home. The seller can walk away from the sale with significantly less damage than a foreclosure.
A homeowner who decides to go through with Short Sale typically experiences less impact to his/her credit. There are no up-front fees or costs associated with the Short Sale. Your lender pays for all fees including closing costs, escrow fees and Realtor commissions. Some lenders are now even giving move out and relocating costs.
A Short Sale is sometimes the best course of action when homeowners who does have equity in their homes are delinquent in their monthly payments or in default of the terms of their loan. Short Sales offer struggling homeowners an opportunity to wipe the slate clean and get a fresh start.
Please call us at 714-470-8600 or email us at MikePatel@sbcglobal.net today for a free consultation on how to buy a short sale or bank owned or any home! or click below.
[idx-listings linkid=”303388″ count=”20″ showlargerphotos=”true”]