What is a Short Sale?

A short sale is when a lender accepts a discount on a mortgage to avoid a possible foreclosure auction or bankruptcy. Instead of buying from a seller, you are purchasing the property directly from the lender for a discount. For example: A homeowner, who is facing foreclosure, has an existing first mortgage of $300,000. You write an offer to the lender for $220,000, which is accepted as full payment for the loan. This is a short sale. Why are they willing to take such a discount? Several reasons. First of all, banks do not like excess inventory and bad loans on their books; therefore, if they see an opportunity where they can sell the property without a huge loss, they will do it. Secondly, lenders know they could lose a lot more money if the property goes to auction. There are so many fees involved if the property goes to auction, that they would be better off taking the discount beforehand and be finished with the headache of it all.
 

My Bio
01/14/2008
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Raquel's personal sales philosophy "KNOWLEDGE IS POWER" THE MORE YOU KNOW THE MORE POWER YOU HAVE. Raquel Zapata was born in California. She moved to Largo Florida with her family 18 years ago. Then bought her first home in Brandon… more
 

Raquel Zapata

Brandon, FL

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Majestic Home Realty

Office Phone: (813) 985-3100

Cell Phone: (813) 294-7264

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