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Short Sale explained!!! To the best of my knowledge!!!
When a homes value is less that the amount owed on a mortgage, and the home owner is late making payments on the mortgage, the bank will begin a forclosure process. If the home owner wishes to save his credit rating and avoid the forclosure, a real estate agent is hired to market the home for sale. Since the homes market value is less than the amount due on the mortgage, the agent begins a short sale process. Most often we need to stop the forclosure process so we price the home below market value to attract attention which in turn leads to offers on the property. Once an offer is accepted by the home owner the bank reviews the offer and either accepts the offer or sends a new approved price which is higher. In the event the approved price is higher the agent relists the home at the new approved price and sells the home at this price. Sometimes the approved price set by the bank is higher than the real market value this sometimes causes the home to not sell and the bank ends up forclosing on the home. This short sale process takes anywhere from 2-6 months. In other words short sales ... more
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