What is a real estate Short Sale?
A Short Sale can help you avoid foreclosure.
Question: We are in financial trouble. Our house will not sell for enough money to pay off the mortgage, let alone a real estate commission. What is a short sale and how can this help us in our situation?
A: A short sale is when the lender allows you to sell the home for less then what you owe.
Why would a lender permit this? The decision depends on a number of factors: Where is your house? How much loss will the lender suffer? What is the possibility that an investor would buy the property at a foreclosure sale? Each lender has its own requirements, so I can provide only general information.
Why would a lender permit this? First, you should understand that not all lenders do. The decision depends on a number of factors: Where is your house? How much loss will the lender suffer? What is the possibility that an investor would buy the property at a foreclosure sale? Each lender has its own requirements, so I can provide only general information. You will have to consult your lender to determine what it needs to move forward with a short sale.
The short-sale process works but is complicated, time-consuming and uncertain. If you can start now, before you are in default, you will be ahead of the game.
