Short sales are becoming more and more prevalent today as job losses rise, lay offs increase and work in general is just slowing down. The Realtors For Life Team is dedicated to bringing the public information concerning changing times and ways to minimize an already trying event in one's life.
A short sale is a transaction in which the lender or lender's agree to accept less than the actual mortgage on a home. The difference in the amount the home is sold for and the amount remaining owed can either be forgiven by the lender or arrangements can be made to satisfy the difference. This option is sometimes a good one when the the owner of the home is upside down on the mortgage and can no longer make their payments. There is a possibility that this could be less damaging to one's credit than foreclosure but situations do vary. From the lender perspective it is sometimes good for them to accept a short sale in lieu of foreclosure due to reducing potential costs of securing and selling due to foreclosure.
The drawbacks currently faced in a short sale is one of not knowing what the lender will accept when the home is listed. Offers have to be submitted and the bank then chooses to accept or counter. While this is similar to to traditional sales the difference is knowing where to start with a listing price. Every situation is different of course but this seems to be one of the biggest issues faced when doing a short sale. Another drawback is the length of time it takes to work through a deal as more than the owners eyes have to see it. One last drawback is unresponsive lenders. All these drag the process out but even with this a short sale is a alternative to foreclosure. If you would like to know more about short sales visit www.realtorsforlifeteam.com and contact us.
Doug McAnally
www.realtorsforlifeteam.com
205-267-8390
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