A short sale is a real estate transaction in which the proceeds from the sale do not cover the balance owed on a loan or loans on the property. Lenders accept a discounted payoff on the loan and allow the sale to close escrow. The bank will agree to discount the loan due to an economic hardship on the part of the mortgagor, and the homeowner will sell the mortgaged property for less than the outstanding balance of the loan and turn over the proceeds to the lender or bank.
The main goal of a short sale is to prevent foreclosure, however the bank’s decision to move forward with a short sale is dependent on whether there will be a smaller financial loss taking the short sale or in the carrying cost associated with foreclosure.
Advantages for the homeowner are avoidance of a foreclosure on their credit history and some partial control of the monetary deficiency. Additionally the process of a short sale is faster and less costly than a foreclosure.Controlling that deficiency and paying off one’s debt via a short sale is a sure fire way to sidestep immense financial hardship and get back on one’s feet. While a short sale does adversely affect a person’s credit history, the impact is far less than that of a foreclosure.
If you or someone you know is thinking of listing your home as a short sale or would like more information about our market in Brentwood, Oakley, Antioch, Discovery Bay or the greater Contra Costa County real esate area. Please contact “Team Elite” of Keller Williams Realty Brentwood. You can reach us at the below contact information
Keller Williams Realty