Don’t Sell Yourself Short, Avoid Foreclosure With A Short Sale. April 25, 2008
Posted by ScottAlexander in : Financing, Real Estate , trackback
What is a “short sale?” Well, it’s certainly not something that is fun to talk about. Simply defined, a “short sale” is a situation where the market value of the property is less than the amount the seller owes his/her lender. For a short sale, the lender must agree to accept less than the full amount due. Why would a lender do that?
There are several reasons. First of all, the lender really doesn’t want to own houses. It is a huge headache for them to repossess, list and sell homes. It is a costly, time-consuming process. The reality is that often it better for the lender to “cut its losses” and allow the owner/borrower to sell short.
This is cold business driven calculus, not motivated by “feel good” sentimentalism. I can’t blame lenders for the problem. Here is why I bring it up. We might see some of these situations in San Angelo in the coming months. If you are someone who has a problem, the last thing that you want to occur is repossession. So talk to your lender. See if you can work something out. Then you might want to talk to them about a “short sale.”
Scott Alexander
(325) 450-5099
scott.alexander1@coldwellbanker.com
http://www.scottalexanderhomes.com
Financing, Real Estate
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