Real Estate Short Sale
Definition of 'Real Estate Short Sale'
There are a few reasons why a homeowner might choose to sell their home through a short sale. One reason is that they may be facing foreclosure. Foreclosure is the process by which a lender takes possession of a property and sells it to recoup the outstanding debt. If a homeowner is facing foreclosure, they may be able to avoid it by selling their home through a short sale.
Another reason why a homeowner might choose to sell their home through a short sale is that they may be underwater on their mortgage. This means that the amount of equity they have in their home is less than the amount they owe on their mortgage. If a homeowner is underwater on their mortgage, they may not be able to sell their home for enough money to pay off their debt. In this case, a short sale may be the only way to avoid foreclosure.
There are a few things to keep in mind if you are considering a short sale. First, you will need to work with your lender to agree on a sales price. The sales price should be low enough that the lender will be able to recoup their outstanding debt. Second, you will need to be prepared to pay off any outstanding debts that are not covered by the sale proceeds. Third, you will need to be prepared to move out of your home quickly. Once the short sale is finalized, the lender will take possession of the property and sell it.
If you are considering a short sale, it is important to speak to a real estate agent and a financial advisor. They can help you understand the process and make sure that it is the right option for you.
Here are some additional details about real estate short sales:
* The homeowner is responsible for paying any difference between the sale price and the amount owed on the mortgage. This is called a deficiency judgment.
* The homeowner's credit score will be negatively impacted by a short sale.
* A short sale can take several months to complete.
* The homeowner may be eligible for a short sale even if they have missed mortgage payments.
If you are facing financial difficulties and are considering a short sale, it is important to speak to a qualified professional. They can help you understand your options and make the best decision for your situation.
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