Foreclosure is a major problem in the real estate market nowadays with lots of people losing their jobs. A short sale can help a homeowner in foreclosure. When a homeowner cannot keep up with his or her mortgage payments, a real estate short sale may be a sound solution for the homeowner. You do not have to wait until you are late on your mortgage payments to start the short sale process. Find out what is a short sale and ask your Realtor early about doing a short sale when you know that you might not be able to keep up with your mortgage payments soon.
Understanding What a Short Sale is
A short sale is a sale of real estate in which the proceeds from the sale are smaller than the mortgage balance on a loan secured by the property sold. In a short sale, the bank or mortgage lender agrees to discount a mortgage balance because of an economic or financial hardship on the part of the mortgagor. This negotiation is all done by the bank’s loss mitigation department.
Stopping Foreclosure
A short sale is often done to stop foreclosure. Often a bank will allow a short sale if they think that it will result in less financial loss than going through with the foreclosure process as there are carrying costs associated with a foreclosure. A short sale is often faster and less expensive than a foreclosure. In short, a short sale is just a process of negotiating with lien holders a payoff for less than what they are owed, or rather a sale of a debt, generally on a piece of real estate, short of the full debt amount. The process does not wipe off the remaining mortgage balance unless the bank expressedly states it in writing.
Learning about Short Sale
There are plenty of books written about short sale. Some books are for homeowners facing foreclosure. These books explain to them what a short sale is and how it can help them save their properties from foreclosure. There are also books aimed at real estate investors wanting to take advantage of the foreclosure market. Foreclosed homes are often cheap so new home buyers and new real estate investors can buy them fairly easily. Examples of books on short sale are The Art of the Short Sale, Short sales: An Ethical Approach, Doctor Foreclosure: The Secret to a Successful Short Sale, and Short Sale: A Practical Approach.
Tags: no broker fee apartments Brooklyn, no broker fee apartments NYC, no broker fee apartments Queens, no broker fees apartments, no broker fee apartments Manhattan, no broker fee apartments queens, no broker fee apartments Bronx