What is a Short Sale in Real Estate? Whats a Short Sale in Real Estate?
What is a Short Sale in Real Estate?
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Many investors and homeowners alike ask themselves, “What is short sale in real estate?” Its not that most folks out there haven’t heard the term, they may just not know exactly what it entails or the pros and cons of performing a short sale. In practically every case however, a short sale is much preferred over a foreclosure any day. Hopefully by the end of this article you will be able to answer the question, “what is a short sale in real estate?”
What is a Short Sale in Real Estate? | Cookie-Cutter Definition
So basically when answering the question, “what is a short sale in real estate?” it can be easily defined in layman’s terms with the definition provided to us by Wikipedia:
A short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property and the property owner cannot afford to repay the liens’ full amounts, whereby the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt. Any unpaid balance owed to the creditors is known as a deficiency.[1] Short sale agreements do not necessarily release borrowers from their obligations to repay any deficiencies of the loans, unless specifically agreed to between the parties.
A short sale is often used as an alternative to foreclosure because it mitigates additional fees and costs to both the creditor and borrower; however both will often result in a negative credit report against the property owner.
http://en.wikipedia.org/wiki/Short_sale_(real_estate)
Although short sales will sometimes end up affecting your credit negatively, making some payment to your lenders or creditors will substantially lesson the hit that your credit would take if your property was indeed foreclosed upon.
What is a Short Sale in Real Estate? | How to Find Short Sale Listings
Now if you’re a buyer, you should definitely know how to find these pieces of property, because you may find yourself in a house that you never dreamed was in your price range through a short sale.
So, how do we find short sales? You can find short sales listed by banks along with other loan companies. All you need to do is look at your local newspaper as well as contact certain loan companies in your town directly.
What is a Short Sale in Real Estate? | Other Benefits
When you’re answering the question, “what is a short sale in real estate?” we want you to know each and every benefit of choosing this transaction method. Here are some benefits that explain “what is a short sale in real estate?”
Within the situation of short purchase, the loan application will not be declined.
However, with a foreclosure, you will not have the ability to get a mortgage within the next five years.
It’s not necessary to pay tax on whatever money you receive after selling your house through foreclosures or short sales which can really help you get back on your feet financially.
Do you happen to have any more questions about the article, “What is a Short Sale in Real Estate?” if you do, feel free to leave them in the comments.
If you enjoyed reading “What is a Short Sale in Real Estate?” then read more about short sales right here at REIMaverick.
http://www.reimaverick.com/what-is-a-short-sale-in-real-estate-1/
http://www.youtube.com/watch?v=4OL66ADMW0o
Duration : 0:3:51
The foreclosure crisis has had a huge effect on individual homebuyers, financial institutions, the economy — and bankruptcy courts. In response, some courts have initiated programs to give debtors and lenders an opportunity to work through their differences — these programs serve the needs of both groups but don’t necessarily lead to foreclosure on the debtor’s home. This broadcast looks at these programs, how they work, and what affect they have had on debtors, creditors, and the bankruptcy courts that use them. Judges Arthur Votolato (Bankr. D. R.I.) and Robert Drain (Bankr. S.D.N.Y.) talk about the programs in their courts with Judge Elizabeth Stong (Bankr. E.D.N.Y.), who will moderate the discussion. Bankruptcy practitioner Patricia Antonelli (Partridge Snow & Hahn, LLP) talks about working within the programs from the attorney’s perspective. John Rao (National Consumer Law Center) and Victor Milione (Nixon Peabody, LLP) discuss the programs from the debtors’ and creditors’ perspectives. Debra Miller, Chapter 13 U.S. Trustee (N.D. Ind.), talks about the role and the view of the Trustee’s office. (April 2011)
Part 2 – In this video we define what a short-sale is and dig into the pro’s & con’s of this type of real estate transaction. This will help anyone looking to either sell their current home as a short-sale or buy one of the many short-sale homes available in today’s market.
Dr Friday Show on getting back to work
If you don’t close your short sale by the end of the year you may be hit with a HUGE tax bill! Danny Poulos, mortgage banker and broker in Jupiter FL explains the ramifications of the expiration of the Mortgage Debt Forgiveness Act.
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