Short sales
Many people that I talk to ask me about short sales. What are they?…
A short sale in real estate occurs when the outstanding obligations (loans) against a property are greater than what the property can be sold for. It can help in many cases to avoid and stop the foreclosure process and prevent serious damage to your credit record. Recently, banks have seen short sales as a benefit to not only the homeowner, but to them as well since banks are not in the business to own property. In most cases, it costs the bank much more to continue the foreclosure process than to get out quick, when a homeowner is interested in selling the home they can no longer afford. A short sale can only be considered during the pre-foreclosure period when you have:
A. Stopped making payments on your mortgage
B. The home is still in your possession and
C. You are experiencing a financial hardship