What Is A Short Sale

You may have heard the term but are not clear on what is a short sale in real estate investing. The newest way to purchase or sell property by negotiating a discount with a mortgage company isn’t very new at all.

To sum it up, a realtor, investor or homeowner contacts the mortgage company of a homeowner who is behind on payments or facing a financial hardship in an attempt to negotiate a discount.

The lender either accepts or rejects an offer to purchase the property lower than current amount owed.

When home values fall and home owners need to sell, a short sale is a great way to create a true win win situation for everyone involved. Most homeowners who have little to no equity cannot afford to pay the difference between what they owe and what the home will sell for.

Negotiating a short payoff on the mortgage can prevent foreclosure for many people who have no alternative.

Being reasonable when requesting a discount is the best way to get a short sale approved. If you request 20-30% off of what is currently owed on the property, your chances of acceptance are pretty good.

If a property is in need of many repairs or has some serious defects you may have luck negotiating as low as 50% of what is owed.

Banks have been loosening their policies as of recently, making it easier to get an approval. Now is the time learn how to short a mortgage loan the correct way.

Since the sub prime mortgage meltdown and decline in real estate values, many people are overleveraged and need to sell. When there is little or no equity in a home and a homeowner must sell, a short payoff may be the answer.

Many investors and real estate agents are missing the boat of huge profits that is floating right by them. Savvy professionals are now asking, what is a short sale?

We Offer A Short Sale Negotiating Service

We Do Loan Modifications And Refinancing

Get Our Free Training Guides and Tips

Return to Short Sale from What Is A Short Sale

Go To: