As more homeowners have fallen behind on their mortgages, many local markets have been flooded with distressed sale properties, otherwise known as short sales. In real estate, a short sale occurs when a homeowner in financial distress 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. The lender either forgives the difference or gets a deficiency judgment against the borrower requiring him or her to pay the lender all or part of the difference between the sale price and the original value of the mortgage.
Lenders hate foreclosures because, even for them, they are legal, financial, and PR headaches. That's why some lenders agree to a short sale, where you sell your home for less than everything you owe.
Agreeing to a short sale is a desperate action for a lender to take. Lenders don't want to lose money on mortgages, but they also don't want to spend their time foreclosing on, owning, and selling property. "The banks really don’t want to foreclose because it costs them money," says Kathleen Hansen, a Realtor with Sold Sister's Realtors on Long Island New York
Kathleen specializes in helping homeowners who are in difficult financial situations by offering free home owner consultative services. There is a lot of paperwork, documentation of how you are in this financial predicament and a lot of persuading to be done with the banks. In order to be successful you need to hire the right person who understands how to get the short sale job done! Call Now: (516) 369-6570
The amount of time, effort and energy spent into selling or buying a home can be extensive and if you do it by yourself, and not with the assistance of a Realtor who know the area, you may run into the risk of losing money and getting a less-than-favorable deal. Sold Sisters Realtor's, backed by Nappa Realty has years of education and experience and help you not only make a solid and responsible financial decision, but also protect you from the many risks currently existing in the real estate market.