Short Sales Information
If you owe more on your home than what your home is worth on the market, then you may qualify for a short sale, the term used to define a legal, lender approved way of selling your home. A short sale can happen by negotiating with your bank or lender to accept a sale of your property to a third party buyer for less than what you owe on your mortgage balance.
Short sales were rare, but with the changes in the economy and financial landscape it has become more commonplace for owners that need to sell their home when their mortgage is “upside down”. Lenders have become more accepting of the practice for several good reasons. For the seller, it is a much better alternative than a bankruptcy or foreclosure.
According to shortsales101.com, Short sales can help all parties involved:
The seller wins by salvaging their credit score with a clean transaction. An avoided foreclosure equates to a saved credit rating. Foreclosed properties can affect credit ratings for up to 7 years. Ouch!
The lender wins by not owning the property via foreclosure. Having physical inventory means that the lender has less money on hand to lend until the property is sold, expenses they would rather not have.
The property buyer wins by obtaining the home at good market value.