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When selling a home in a down real estate market, different issues can arise, including an increase in competition, low selling prices and foreclosures and short sales. In simple terms, a short sale occurs when the mortgage lender agrees to take less on the sale of a property than what the seller owes. Often, foreclosures can cost the lender much more than the amount lost in a short sale. The process takes less time than the foreclosure process. This process allows the homeowner to avoid foreclosure and the associated costs, and the homeowner's credit score won't be affected as severely. Foreclosure can lower a credit score by more than 200 points, while a short sale typically decreases a score by 75 to 125 points, according to debtkid.com. The process takes longer than a typical real estate transaction. When a buyer submits an offer, he must wait for the bank, not just the seller, to respond. Lenders generally only work during typical business hours, so offers typically only get answered during business hours. Purchasing a short sale property can mean getting a great deal on a property, but only in the right market conditions. ShortSaleProcess.com recommends hiring a real estate agent to guide you through the process. Short Sale Way: What is a Short Sale? Metrowest Massachusetts Homes Blog: Short Sales Realtor.org: Understanding Short Sales Team Aguilar Real Estate: Short Sale OptionsDefinition
Benefits to Lenders
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by stacyquin on May 22nd, 2011
I also highly recommend checking out Short Sale Process...from persona l experience.
Who approves the bid amount for foreclosure auctions?
by Answerbag Staff on August 23rd, 2010
| 1 person likes this
Can i be foreclosed on if the mortgage company cannot produce the deed of trust?
by Answerbag Staff on July 26th, 2010
| 1 person likes this
Who has to maintain all the foreclosed homes in Connecticut?
by Answerbag Staff on August 6th, 2010
| 1 person likes this
owned a home in cali; 1st foreclosed in 2008. the 2nd just sent me to collections. can they do this? isnt the 2nd wiped out in foreclosure?
by bahama00 on May 5th, 2010
| 1 person likes this
My home was foreclosed on in 2009 and the lender has not sued yet, if i receive an inheritance can the bank sue for it? If so, for how long?
by CTconfused on November 20th, 2010
| 1 person likes this
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