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What is a short sale?

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2010-09-15 18:26:10
2010-09-15 18:26:10

A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property's loan. It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the borrower. Both parties consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the borrowers.

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Many realtors will sell a house as a short sale. However a short sale has to be approved by the bank first.

A short sale must be approved by the lender. It will not approve your proposal.A short sale must be approved by the lender. It will not approve your proposal.A short sale must be approved by the lender. It will not approve your proposal.A short sale must be approved by the lender. It will not approve your proposal.

Yes, you can purchase a Short Sale with an FHA loan. There are no restrictions on the type of financing in the purchase of a short sale.

A short sale is an option when a property owner is not able to afford the obligations of a loan. The amount of time a short sale is on a credit report can be answered by a lawyer who is assisting in the short sale. A short sale may hinder future loans.

Short sale is a great option for investors who want to make some money. If they make a smart purchase of a short sale home they can earn a huge profit. But, they need to be very careful when buying a short sale.

Short Sale Advisory ~ or Short Sale Addendum

Anyone can do a short sale provided their home is worth less than the balances owed on mortgage. Banks will look at short sale even if you are current, so if you have to sell, submit your paperwork to the bank ad they will let you know if you qualify for a short sale.

A short sale will have a detrimental affect on your credit record but not as bad as a foreclosure.

Generally, no a homeowner cannot sell a short sale to a family member or other related party. This would violate the arm's length transaction requirement of a short sale.

From what I understand the bank has to agree to the short sale and then takes that as the mortgage paid.

You do not need to live in the house to complete a short sale. In order to qualify for the HAFA short sale you would need to of lived in the property within the last 12 months.

Short sales are usually used as an alternative to foreclosure and any liens the sale falls short of paying are released. However, the short sale agreement may not necessarily relieve the obligation of the borrower from repaying the debt.

It's better to refinance. A short sale will reflect negatively on your credit record.It's better to refinance. A short sale will reflect negatively on your credit record.It's better to refinance. A short sale will reflect negatively on your credit record.It's better to refinance. A short sale will reflect negatively on your credit record.

How do you get out of a second mortgage when the house has been sold on a short sale?

A short sale incurs a loss for the bank or other institution that extended the loan to the homeowner. Therefore, the homeowner must negotiate the terms of the sale with the bank before attempting to sell the property. There are a variety of consequences for the owner of a short-sale property.

If a bank refuses a short sale offer, you can only make a new offer to the bank. Your real estate agent will be able to give more details about the short sale process.

A "short sale" refers to a home that is being sold for less than the balance owed to the mortgage company. For example, a home is listed for 450,000, but the owner owes 600,000 on the home. This would be a short sale.

Yes, but the amount of the concession depends on the type of short sale. An FHA Short Sale (under the HUD Pre-foreclosure Sale Program) can include up to a 1% seller concession only if the Buyer is utilizing FHA financing in the purchase. A HAFA Short Sale will allow a seller concession, but the amount depends on the proposed net proceeds to the mortgage servicer.

A naked short sale refers to the borrowing of securities. In this type of sale, there is no promised three-day delivery to the buyer, like there is in regular exchanges.

Can a family member buy a short sale property from a family member

The state you reside in has nothing to with whether or not you will have to pay back the difference of what you owe in a short sale. Whether or not you have to sign a note and pay back the debt is up to the lender.

A short sale is most often using when a homeowner is facing foreclosure. If the amount offered by a potential buyer of your house is less than the amount you owe your lender, you can ask the lender to accept the offered amount as payment in full. The lender does not have to agree to accept a short sale. They may elect to go ahead with a foreclosure because of other liens on the property (such as 2nd mortgages.) You can request a short sale by submitting a short sale hardship letter to your lender.

In the real estate industry short sale initiates when the borrower is in financial crises and unable to pay the mortgage amount. In case of a short sale, property is sold to a third party (not the bank) and the proceeds from the sale go to the lender. After the sale of property the lender can opt for recieving the diffieciency amount or may forgive it. In many states is hould be forgiven leagally.

In most cases it is preferable to foreclosure. I disagree. A short Sale has less impact on your credit score than a foreclosure.

Yes. The LLC will need to provide its Certificate of Formation and Operating Agreement to the mortgage servicer reviewing the short sale.


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