What Is Short Sale In Real Estate?The answer to what is short sale is simple. It is when a mortgage loan for a homeowner facing default is discounted, reducing the payoff amount due to satisfy the loan. Mortgage companies are becoming much more accepting of a mortgage short payoff. The state of the real estate market has put many lenders in financial trouble and they are doing anything to avoid more major losses. Foreclosure is very expensive and a short sale represents the minimizing of a loss. A mortgage company can lose as much as 60,000 dollars by foreclosing on a house. Legal fees, purchase and sales costs, maintenance and administration costs can all amount to a much bigger loss than a reasonable discount. Since the Mortgage Debt Forgiveness Act was passed by the US government in late 2007, homeowners are now able to walk away from any tax consequences in many cases. One notable exception is investment properties. A homeowner can learn how to discount a mortgage loan themselves to prevent the mortgage company from foreclosing. Investors and Realtors who don't know how to negotiate short sales are missing out on a highly profitable niche that is a true win-win. The answer to the question "what is a short sale" is simple, although the process can be difficult. Understanding the process and accurate training can make the process a whole lot easier. Get Our Free E-Course Training Guides and Tips
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