Tuesday, May 27, 2014

"What is a Short Sale"?

Buyers often ask "What is a Short Sale"?
A Short Sale, also known as a pre-foreclosure sale, is when the Seller cannot sell the home for the amount they still owe on their mortgage. The market value is less than the amount they currently owe with extreme circumstances in which the Seller has fallen behind on their payments. If the mortgage company agrees to a Short Sale, the Seller can sell the home and pay off a portion of their mortgage instead of foreclosing.
The draw backs to short sells are they are very time consuming and there is no guarantee the mortgage company will sell for the price the Seller is advertising unless it states pre-approved short sell.