What is a Short Sales?
Welcome to What is a Short Sales, the webs first stop for information, assistance, resources and answers to “What is a short sales?”. Guiding home buyers and homeowners through the myriad of resources on the web relating to Short Sales, Foreclosures, REO’s, Cash for Keys, Deed in lieu of Foreclosure, Divorce Stays on Foreclosures, HAFA and a host of other Federal, State and Local programs for homeowners underwater in their mortgages.
Resources for Americans going through a Short Sale, information on Short Sales in 2011, data on the Rate of Short Sales in 2011 and factors that impact Short Sales. Since you asked yourself what is a short sales, and want information on what is a short sales, please review this website and feel free to contact us if you have any questions or need personal assistance from one of our Short Sale experts.
A short sale is defined as a transaction in which the seller’s lender agrees to take less than the full amount owed on the property as a full payoff, typically in order to avoid the costs associated with legal fees andholding costs that will accompany an imminent foreclosure. The lender will consider approving the shortsale only after a few criteria are confirmed: the property is worth less than what is owed on the mortgage,the homeowner is behind on their mortgage payments, the homeowner is not in active bankruptcy, and thehomeowner has proven legitimate financial hardship. Before we explain the process of completing a shortsale, it is important that you understand the relationship between each of the parties involved in thepurchase of a property and how they will benefit from completing a short sale.
Benefits of the short sale for the seller:
- Avoids foreclosure stigma
- Re-Purchase another home in two years
- Saves credit rating to an extent
And for the Bank/Investors:
- Escape legal fees
- Minimize holding costs
- Mitigate losses sooner
- Protect reputation with investors
- Net more today than tomorrow
- Replenish funds to purchase more loans
