Archive for the ‘Buyer Benefits’ Category

What’s A House For Short Sale?

Sunday, February 26th, 2012

What’s a House for Short Sale?

How is this beneficial to you?

In simple terms 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 treble benefit:

  • The existing 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 bank avoids the exorbitant costs and substantial legwork concerned in foreclosing and acceptably getting rid of a foreclosed home.
  • The home buyer benefits financially, obtaining a quality home at a discount. This is a unique opportunity in the current real-estate market.

Are you a buyer?

Substantial savings might be in store with a house for short sale, as the lender is willing to allow the home to be sold at less than its current loan balance. To explain, buy your dream home for less!

Are you a borrower?

A house for short sale will impact a house owner’s credit far less than a foreclosed home. Repossessions remain on official record permanently and can have an effect on borrower credit so long as 10 years or longer. Also, the foreclosure must be disclosed when applying for certain funds like Fannie Mae, mortgage or investment mortgages for up to 7 years!

Once the sale is over, delinquent payments will show on your credit score. However , a home for short sale usually shows as ‘paid as agreed ‘, ‘paid as negotiated ‘, or ‘settled’. Therefore , a short sale is the ultimate option if loan modification is not available. The impact to your credit will be a lot less serious.

What about lenders?

The bank is often glad to unload the house for short sale because this allows them to minimize costs involved with foreclosure.

It truly does come down to the bottom line!

Kendra Chui is a expert helping homeowners .

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