A short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property, and the property owner cannot afford to repay the liens' full amounts and where the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt.[1] Any unpaid balance owed to the creditors is known as a deficiency.[2][3] Short sale agreements do not necessarily release borrowers from their obligations to repay any shortfalls on the loans, unless specifically agreed to between the parties.
A short sale is often used as an alternative to foreclosure because it mitigates additional fees and costs to both the creditor and borrower.
If the lender agrees to a short sale, they will set a minimal price they will accept and that is how you as a buyer "SAVE MONEY". For example; A home can be worth $200k however the current owner owes $205k they are as we would say about a car "upside down" but they may also be unable to pay the mortgage any longer due to loss of job, 401k, divorce, illness etc.. The lender will establish the value, how much the borrower still owes and how much after reducing their fees, late fees accessed etc. will they allow the seller to sell the property. Let's say the lender approves the short sale and the sales price is $185k you can now purchase this home with $15k worth of immediate equity and that's how you save money on buying a short sale home.
Find out more by going to our website and getting "Free" short sale and foreclosure listings and start saving today. Call Faith now for more information at 281-743-0243.
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