Short Sale Homes

How a short sale works.

Short sale homes. A short sale home can be a good opportunity for some buyers but also presents challenges. A short sale typically occurs when the homeowner has fallen behind on the mortgage payments due to financial hardship. For the bank or other lender that owns the mortgage a short sale is preferable to letting a home go into foreclosure.

A short sale is a sale of real estate in which the net proceeds from selling the property will fall short of the debts secured by liens against the property. In this case if all lien holders agree to accept less than the amount owed on the debt a sale of the property can be accomplished. Short sales can be bargains for home buyers but prepare to jump through many more short sale buying hoops than you d find in a foreclosure or even a typical home sale.

A short sale is the sale of a home for less than the homeowner owes on the mortgage. Negotiation through the loss mitigation department will be the key factor in getting your new home at a deep discount. If opportunities emerge in which lenders can sell distressed properties without registering big losses they will do it.

A homeowner who is unable to keep up with the mortgage payments may try to sell a home in a short sale to avoid going into foreclosure short sales can be challenging for both buyers and sellers because there s often more than one mortgage on the home and all lenders must approve the sale. It is up to the mortgage lender to approve a short sale. In a real world short sale scenario a home seller puts his or her property on the market while formally designating the home for sale as a potential short sale subject.