What’s A House For Short Sale?
Posted on January 30th, 2012
What’s a House for Short Sale?
How is this favourable to you?
In a simple term a house for short sale is sold at an amount that’s lower than its remaining loan balance.
A house for short sale offers a triple benefit:
- The current owner avoids lots of the damaging effects of foreclosure, including lasting impact to their credit reports, and future Problems on government funded loan programs.
- The lender avoids the exorbitant charges and substantial legwork involved in foreclosing and adequately disposing of a foreclosed home.
- The purchaser benefits financially, obtaining a quality home at a lowered price. This is an especially unique opportunity in the prevailing real-estate market.
Are you a buyer?
Substantial savings may be in store with a house for short sale, as the bank is willing to allow the home to be sold at less than its current loan balance. It means, get your ideal home for less!
Are you a borrower?
A house for short sale will impact a house owner’s credit a lot less than a foreclosed home. Foreclosures remain on credit record permanently and can impact borrower credit as long as 10 years or longer. Also, the foreclosure must be disclosed when applying for govt. funds like Fannie Mae, mortgage or investment mortgages for as much as 7 years!
Once the sale is over, late payments will show on your credit history. However , a house for short sale typically shows as ‘paid as agreed ‘, ‘paid as negotiated ‘, or ‘settled’. Therefore , a short sale is an ideal option if loan alteration is not available. The impact to your credit will be far less damage.
What about banks?
The bank is usually happy to unload the house for short sale because this allows them to reduce expenses involved with foreclosure.
It really does come down to the bottom line!
Kendra Chui is a short sale process expert helping homeowners get short sale approved with money back.
Tags: get short sale approved, house for short sale, short sale process, what is a house for short sale
Filed under Avoid Foreclosure, foreclosure help, get short sale approved, house for short sale, short sale process, what is a house for short sale |
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