Understanding a Short Sale (Real Estate) A short sale in real estate involves selling a home for less than the balance remaining on the mortgage.Special Considerations. …Short Sale vs. …Short Sale Alternatives. …Details of a Short Sale. …Short Sale Strategies for Buyers and Investors. …It All in the Numbers. …The Bottom Line. …
People also ask
What is a short sale of a house?
If there is a mortgage balance that is greater than the market value of the home, that property is considered to be a short sale, providing the lender agrees. Many people do not realize that a short sale can occur when the closing costs cut into the bank’s payoff amount.
What is’short sale (real estate)’?
What is ‘Short Sale (Real Estate)’. A short sale in real estate is when a financially distressed homeowner sells his or her property for less than the amount due on the mortgage. The buyer of the property is a third party (not the bank), and all proceeds from the sale go to the lender.
Is a short sale better than foreclosure?
A short sale does way less damage to a homeowner credit report and credit score than a foreclosure. This means the homeowner will be in better shape to apply for a mortgage and buy a new home down the road.
What are the benefits of a short sale for distressed home seller?
Here are a few of the benefits of a short sale for a distressed home seller: Short sales do way less damage to a homeowner’s credit report and credit score than a foreclosure. Homeowners have the dignity of being able to sell their own home. Short sales enable homeowners to stay in the home until the sale is completed.