What is a Short Sale?
A short sale is a sale of real estate in which the proceeds from the sale fall short of the balance owed on a loan secured by the property sold. In a short sale, the bank or mortgage lender agrees to discount a loan balance because of an economic or financial hardship on the part of the mortgagor. This negotiation is all done through communication with a bank's loss mitigation or workout department. The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender, sometimes (but not always) in full satisfaction of the debt. In such instances, the lender would have the right to approve or disapprove of a proposed sale. Extenuating circumstances influence whether or not banks will discount a loan balance. These circumstances are usually related to the current real estate market and the borrower's financial situation.
•Homeowner: How will a Short Sale affect me?
•Homeowner: What are my rights during a Short Sale?
•Buyer: Can I take advantage of a Short Sale?
•Buyer: What can I expect when buying a Short Sale property?
How will a Short Sale Affect me?
This is somewhat of a gray area. It doesn't have to have any negative impact on the owners credit score as long as the owner continues to make the mortgage payments on time. If you miss payments at anytime during the loan term these will show up on your credit report and can lower your credit score dramatically. Of course, one of the main factors in evaluating a loan application is the borrowers past history with making payments on time. So, keep those payments on schedule! The short sale, if handled correctly, should not result in a major black mark on your credit.
What are my rights during a Short Sale?
Your rights as a home owner during a short sale differs from jurisdiction to jurisdiction. That's why it is important to work with you lender and an experienced realtor to help you through this difficult time.
Can I take advantage of a Short Sale?
Short sale real estate properties are bought and sold everyday throughout the country. A savvy buyer can pick up some great deals for a new home or as an investment property. However, there are risks and pitfalls associated with buying a short sale property. Let an experienced realtor guide you through this potentially lucrative transaction.
What can I expect when buying a Short Sale property?
If you make an offer on a short sale property, be prepared to wait. Banks are notorious for taking as long as several months to respond to short sale offers. We have the experience to manuever through the paperwork and waiting game associated with buying a short sale property. Let an experienced realtor be your partner in your next short sale transaction.
If you would like a free consultation about a Short Sale Property in Downey, Compton, Bellflower, Lynwood, Lakewood, Artesia, Cerritos, Norwalk and nearby Los Angeles suburb cities, call me Jose Sarabia at 562-843-6031 or visit my website at : http://www.jmsrealestate.net/
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