subject: Who Makes Money From Real Estate Short Sales? [print this page] Real Estate Short Sales are at an all-time high. With the economy being in such distress short sales and foreclosures are common. Many homeowners are losing their jobs and finding it hard to make ends meet. This directly affects the real estate market because people that once had no problem paying the mortgage are now struggling. A short sale is a much better alternative than a foreclosure.
When a homeowner owes more on their mortgage then what the property is valued at, a homeowner doesn't have many options. They may need to sell the property, but won't be able to pay off the balance owed to the lender. In this case they could foreclose or short sale. A real estate short sale is much better for the lender and the seller. The seller will not be responsible to pay the balance owed on the property after it's sold. Another aspect a seller needs to take into consideration is their credit. Whether a seller decides to foreclose or Short Sale it will impact negatively on their credit. A short sale is a much better option because it won't hurt their credit nearly as bad.
When a homeowner is ready to seek information about short selling their property they should contact a Real Estate Agent. There will be a lot of paper work and contracts that a seller will need to read and sign. The sellers realtor can walk them through the short sale process.
Real estate short sales on the market will be listed at a below market value, which is a good opportunity for buyers. If a buyer is looking for an affordable home a short sale is a good option. They could be buying a home that has instant equity. real estate agents, title companies, and insurance companies all will benefit financially from a short sale. It's also better for the lender to have a short sale than having a foreclosure. Foreclosures can take longer to sell and the longer the property is on the market the more money the lender is losing.
