Short Sales are beneficial for all

When it comes to the real estate market today, a lot of people are nervous about foreclosure, but there is an alternative that is beneficial for the new buyer, the seller and the bank. This alternative, a short sale, is a pre-foreclosure sale whereby the bank permits the mortgage loan to be discounted for a new buyer.

A short sale can be beneficial for new buyers because they are allowed to purchase a home at an extremely discounted price.

Banks win in short sales because they don’t want to lose the money they would normally in a foreclosure. The bank would also have to pay the attorney fees involved with foreclosure, as well as holding costs. A short sale also removes the danger that the distressed homeowner may turn the home inside out and purposely damage the home.

The homeowner also benefits from a short sale because their credit can be spared a negative mark that a foreclosure causes through a successful short sale. A short sale also helps the homeowner avoid a summary judgment as a matter of public record on their credit report.

In order to be able to benefit from a short sale, homeowners need to be able to convince their lender to absorb the difference between the prices of the home and the mortgage, as well as find a buyer for their home in a short amount of time. This can prove difficult unless they search for short sale help from a short sale company, which not only deals with the lenders for the homeowner, but works with a realtor to help find a buyer for the home within the amount of time necessary for the short sale to go through.