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Are Short Sales a Legitimate Solution? The Answer is a Resounding Yes!

By
Real Estate Agent with Dave Halpern Real Estate Agent, Inc., Louisville, KY (502) 664-7827

A short sale can enable an “upside down” house to be sold with no cost to the seller. The lender usually forgives all the shortfall.

Sellers sometimes think if it’s too good to be true then it can’t be true. Is it legit? YES!

Why would the bank forgive tens of thousands of dollars?

Many articles have been published illustrating that save 13% to 26% in a short sale compared to a foreclosure. It is very costly and risky for the banks to foreclose on a house. They do not want to own and operate houses, they want to settle and recover cash, not get the keys to a house that they have to dump cheap anyway.

There are many cases that the banks lose even more in a foreclosure. Houses are prone to vandalism, mold, water damage, city liens and fines and a variety of other maladies that diminish the value of the property and diminish the net to the lender.

In many cases the short sale is the best solution for the bank

It is not only legitimate, it is often encouraged by the lender. Bankruptcy attorneys and other formal advisors may suggest that a short sale just can’t be true. However, even if friends, family and others advise against a short sale, sellers should always seek the advice of the best short sale Realtor they can find. Also, not every real estate agent is a short sale expert.

Lenders approve short sales every day

Not only is it a legitimate solution, in most cases it is the best solution for homeowners who owe too much on their home and need to sell. Short sales can be done whether the seller is behind on payments or current on their mortgage.