Okay, the classes I teach on Short Sale methods range in price from $50 to $200 - do you know how many people come to the class and don't even know what a short sale is? Bunches! That's how many.
First you must know that in most states it is the lender who actually owns the home. I know, stinks doesn't it? Read your mortgage note. Now that you know you don't actually own your home you also need to know that you do get the privilege of occupying it according to the terms of the mortgage. If, however, you violate the terms of your mortgage agreement the lender can take their property back. They do NOT want to do so.
In spite of what you may have heard the lender/bank generally does not want your property ... they do, however, want their money. If you miss a payment and default on your commitment the bank can start the process to reclaim their property. Like I said earlier, they don't want your property - they want your money. However if it becomes clearly evident they are not going to get their money they may settle for something other than the original agreement.
One thing they may settle for instead of going through the entire foreclosure process is a deed in lieu of foreclosure. This is where they simply accept the property back from the borrower. Another thing they may do is restructure the loan in any one of numerous ways. Although many people think this is new it is not but it is very popular right now and that is the short sale.
Here, in short, is the short definition of a "short sale" as it applies to a real estate transaction. When the lender accepts an offer from a buyer on a property for an amount less than the existing payoff.
There is a volume of information to explain that transaction, how to handle one and how you are actually somewhat of a hero for doing so. While this is not strictly an advertisement for my class I would love to have you join us. Or you can just watch the video. Of course that will really make you want to participate in a class. Better yet, join me for an online workshop soon!
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