Short Sales In Ca Aren't Any Different From Anywhere Else

There are enough people out there who believe that short sales in the different states are different

. Of course they are because of the different Federal Laws in the different states, but the basic principles are more or less the same. So if you are looking to buy a house and you're worried you won't be able to pay off the loan in later years there is no need to fear the short sales in ca.

A short sale is the situation where a piece of real estate property is sold for less than what the bank is owed on the mortgage loan. A short sale is normally executed in the regrettable instance where a borrower is unable to pay the loan he received from the bank to purchase his/her real estate property.

When the borrower is seen to be unable to pay off the loan on a mortgage the bank normally has to make an assessment. The assessment in support of a short sale relies on the fact that getting back the money owed is close to impossible. Sometimes a bank opts for a short sale because the procuring the debt from the borrower is going to be an extensive process that can take forever.

In the event of a short sale occurring the borrower's credit record is inevitably tainted. When you think hard about it it does make sense that failure to pay off a mortgage loan should be highlighted on a person's credit records. And this is the same everywhere else, whether you're in ca or another state. Such a dent remains on ones credit report for 7 years and it is only then that a person can get a loan again.

But there are some businesses that force themselves into short sales. The moment when business is low and there's no prospect of revival a business will simply start defaulting on their bank loan payment. Now this is the case with voluntary short sales that the borrower brings upon himself on purpose.

Short sales are normally preferred in relation to foreclosure. Foreclosure is a longer process and it is more costly than a short sale because of the long procedures of finalizing such a foreclosure. In addition a foreclosure amounts to a bigger dent on ones credit report and new mortgage loans will take more than 7 years to acquire.

Like everywhere else a short sale has to be approved by Junior Lien Holders. On the other hand tax lien holders can actually object to a short sale. Therefore failure to pay a mortgage loan doesn't always lead to a short sale. Even a Junior Lien Holder can object to a short sale.

by: Lance Thorington

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