Back To The Basics - What Is A Short Sale? Part #2
Please read Back To The Basics - What Is A Short Sale? Part #1
Why Short Sales Work
When homeowners cant make their mortgage payments, lenders don't want to foreclose, and real estate agents are having difficulty finding clients, short sale can be the ultimate win-win-win solution. Especially in the Las Vegas, Nevada market.
Short Sales Benefit Homeowners
Serious financial problems are typically due to unpredictable, uncontrollable events (divorce, health problems, death, job loss, etc.) Adding the trauma of foreclosure to an already stressful life situation can crate an enormous burden for the homeowner.
The process is long and painful-it is embarrassing and demoralizing, and, because it destroys credit, it offers a much bleaker picture of the future for that homeowner.
Although the end result of a short sale is the same as foreclosure (the borrower is going to lose their homes), the short sale process is a great deal less traumatic than the foreclosure process.
Short sale offer the homeowner a great level of control and the ability to maintain dignity and privacy while getting out from under the weight of debt. Borrowers who go through a short sale can also begin planning optimistically for the future because the damage to a borrower's credit will be minimized.
These types of losses are also viewed more favorably be lenders and business associates in the future because the borrower responsibly worked out an agreement with the lender and did not simply walk away from his or her creditor.
Source: The Five Star Institute
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