Short Sales Increasing In Prevalence

Five years ago, most people did not even know what a short sale was

. In 2010, it is becoming more and more common. Now, it is rare to find someone who doesnt know what a short sale is. When the housing market was doing much better, banks had many reasons to refuse a short sale. It just was not a very good deal for them; they lost a lot of money from the transaction. These days, however, more and more banks and lenders are getting used to short sales as a common transaction in the United States. In a better economical situation, lenders have more options and do not have to accept short sales to make money. However, in 2010, they would rather accept the money they can get from a short sale than get no money at all.

A short sale involves a bank or mortgage lender agreeing to discount a loan balance because of an economic or financial hardship on the part of the borrower. The home owner sells the mortgaged property for less than the balance of the loan and turns over the proceeds of the sale to the lender. The seller must find a buyer before he or she can complete the transaction. The bank will accept a financial loss because it is better than not getting paid at all, while the seller is able to avoid the devastating affects of foreclosure on their credit score. This is beneficial for the seller especially because their credit will still be high enough to finance a smaller home in the future. This process involves several complicated steps. For this reason, it is generally a good idea to hire a team of short sale experts to assist with the transaction.

The economy is leading many real estate agents to embrace real estate short sales. However, a seller must be careful about who they hire to help them with their short sale. As I said before, it is a complicated transaction and should be handled by someone who has experienced in short sales. Although many people are wary of committing their career to solely short sales, there are a lot of agents out there with extensive short sale experience. When finding a short sale agent, it is important to make sure that he or she has successfully negotiated a number of short sales in the past. Real estate agents who say they have short sale experience may not have any experience working with distressed properties. Just because someone has sold a house before, does not mean that they are qualified to work with short sales. However, it may be a good idea to ask your realtor to recommend a short sale experts in the area. They are usually up to date on who is a short sale expert.

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