What is a Short Sale?
A short Sale is when the lender, through negotiations accepts less than what is owed on the property to satisfy the not to release the lien.
How Does it Benefit the Seller?
A Short Sale offers significant benefits to the homeowner, such as:
1. A short sale will allow the homeowner to eliminate the mortgage debt without the expense of needed repairs to get the property sold.
2. The Sellers are able to stay on the property until the process is completed.
3. No upfront fees are required. DO NOT PAY UPFRONT FEES TO ANYONE!
4. Closing Costs and Commissions are paid for by the lender
5. The seller avoids the negative effect of a foreclosure on his or her credit.
6. May help avoid bankruptcy.
7. less stress. more piece of mind.
How Does it Benefit the lender/bank?
For the Mortgage holder there are real advantages to getting the property sold, even at a discount, while the borrower is still in the home:
1. The costs to maintain the property are paid by the borrower and the seller has an incentive the keep the property in good shape.
2. The foreclosure process can get very unpleasant, particularly towards the end of the process.
3. The lender avoids paying the considerably high fees associated with a foreclosure such as; attorney, court, processing and handling fees. Not to mention the insurance, taxes and repair costs.
Bottom line, banks do NOT want to own your home!
How Does it Benefit the Buyer?
Buyers are able to purchase a property, in most cases, substantially below market prices resulting in immediate equity. These properties are typically much better maintained than a foreclosure property and in need of fewer repairs.
