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10 crucial steps to 'short sale' buying
There are very few active buyers in the real estate market these days -- but every one of them seems to be looking to buy a foreclosure or a short sale.
Foreclosure is a fairly well understood process, but as "short sale" signs sprout like weeds, you may wonder what it's all about.
When a lender agrees to accept a mortgage payoff amount less than what is owed in order to facilitate a sale of the property by a financially distressed owner, it's called a short sale. The lender forgives the remaining balance of the loan.
Everyone loses -- or winsShort sales are a mixed bag for the buyer, the seller and the lender.
If you're a seller, a short sale is likely to damage your credit -- but not as badly as a foreclosure. You'll also walk away from your home without a penny from the deal, making it difficult for you to find another place to live.
The buyer gets the property at a reduced price but the property in all likelihood has its share of problems -- think fixer-upper -- and will need to go through considerable red tape in order to make the deal happen.
The ... more
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