Real Estate Short Sales »
Posted By realestateshortsales 1 year, 3 months ago in Business & FinanceSimply put, a short sale occurs in a situation when a home owner's debt on the property is greater than the amount for which the property can be sold. This means the lenders are willing to accept less than the total amount due. Here's an example: Assume a homeowner has an unpaid loan balance of $120,000, but the property will only sell for $100,000. The lender accepts that $100,000 as full payment, which is obviously " short" of the full $120,000 payment. Since lenders aren't in business to lose money, you can imagine that they're reluctant to do short sales and will often only do them as a last resort. It can make more financial sense for them to go through with a foreclosure.
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sell-my-mortgage-note-guru1 year ago
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A lot of people don't know what a short sale is. Thanks for the info. From what I hear (and see locally), many foreclosed homes are going for well below what they were mortgaged for originally. This is particularly true for those 100% sub-prime loans. I wouldn't be surprised that many short sale offers wouldn't be well above what a bank can eventually sell the home for, not to mention the added costs of foreclosing. We all have to strike a happy medium to stop this spiraling real estate market.
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sell-my-mortgage-note-guru1 year ago
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A lot of people don't know what a short sale is. Thanks for the info. From what I hear (and see locally), many foreclosed homes are going for well below what they were mortgaged for originally. This is particularly true for those 100% sub-prime loans. I wouldn't be surprised that many short sale offers wouldn't be well above what a bank can eventually sell the home for, not to mention the added costs of foreclosing. We all have to strike a happy medium to stop this spiraling real estate market.
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