subject: Short Sales Help Home Owners Prevent Losing their Homes to Foreclosure [print this page] Short Sales Help Home Owners Prevent Losing their Homes to Foreclosure
Short sales are a manner of selling homes in pre-foreclosure that homeowners can opt for instead of losing their homes to foreclosure. In this kind of transaction, the home is sold at a price that is lower than the homeowner's existing loan. The lender on the other hand accepts this discounted payment and considers the loan paid, thereby stopping the actual foreclosure that is sure to follow after the pre-foreclosure period has expired. This is a win-win situation for both the homeowner in debt and their lender. Short sales also represent a golden opportunity for buyers as they are assured of getting a good bargain owing to the manner by which the home is priced.
A short sale is indeed an ideal arrangement for home owners as it saves their credit score which will definitely take a serious hit if they lose their homes to foreclosure. On the side of the lender this set up works well too as it would save them the cost of mounting an actual foreclosure on the home. It also reduces the time of removing the property from their books.
The Process for Short Sales
The duration of a short sale is usually between 300 to 400 days and there will be no deficiency judgment in the end. Compared to a foreclosure, a short sale is a far more amicable manner of settling the issue. Its negative impact on the homeowner's credit report will last for only two years while a recorded foreclosure stays of for seven years. Short sales likewise do away with court orders and sheriff's sales as well as emotionally charged evictions because it is a process that the home owner voluntary steps into.
Buyers of distressed homes through short sales are adequately protected because the entire process is approved and monitored by the lender. Homeowners going for short sales have enough reason to be on the level with prospective buyers because their main motivation for selling is to prevent losing their homes to foreclosure.
