subject: Advantages Of A Real Estate Short Sale [print this page] Do you want to avoid foreclosure of your property and be able to pay your lender at the same time? One option that may gather your interest is engaging in a real estate short sale. If you cant afford your payments and want to pay them back less than you owe, then this would be the choice for you.
In real estate short sale, an agreement is made between the seller and the mortgage lender. The seller persuades the lender to accept the price of a house that is less than what the owner actually owes in the mortgage. If the lender accepts what the seller is proposing, all debts are absolved. The problems of prolonged process of foreclosure are the ones that the lender is avoiding, therefore agrees to the proposal of the seller. On the other hand, the seller does not profit from it. But as long as the debt is paid and the prevention of problems that would come from pre-foreclosure is an invigorating option.
Short sale is sometimes called pre-foreclosure sales since it is the process that every seller undergone before the actual foreclosure is made. Real estate short sale is a legal procedure that may save you from complete bankruptcy. It isnt different nowadays since people are facing some credit problems. It is less risky than undergoing foreclosure and/or bankruptcy.
Moreover, real estate short sale has its own advantages as anybody would call it a win-win-win situation. It is the wonderful part of the short sale for the three parties involved- the buyer, the seller and the lender.
The first gain goes to the buyer who bought the property of the seller. The buyer does not only possess a new property but has invested in it with a great discount. The buyer can also profit from it as long as he can work it out well.
The second gain goes to the seller or homeowner who owes the lender some amount of money. By selling the house even at a low market value, the seller has avoided the problem of foreclosure that may mark his/her credit. The seller will have to face only less negative effects than that of the effect of a foreclosure. Getting out of the mortgage liability is a relief for the seller.
The last gain goes to the lender like the bank and other loaning company. Entering into an agreement of short sale will save them a lot of time and money in avoiding the lengthy and costly process of foreclosure. It will be best for them not to take the property especially if the house is not suitable for selling. The responsibility of selling it may only add to their problems and the only thing they want is to have the money back.
Short sale is indeed very beneficial if the goal of each party is met. But of course meeting with your professional real estate agent may help you understand more of this procedure. You may not only win, but may also profit from it.
