All about short sales
Wednesday, February 25th, 2009
What are short sales? Short sales refer to sales of real estate property where the amount you pay is less than the loan secured on the property being sold. Short sales also have the distinct feature of having a discount on the loan balance, as given by the seller – whether by bank or mortgage lender – due to financial problems on the part of the seller. The lender still retain the debt to the bank or financial institution, while the seller simply gets a good deal on the property. A short sale is only done when the bank sees that putting a piece of property on a short sale will result in lesser, more tolerable and manageable losses compared to foreclosing the property. Short sales are done through bidding, with the highest bidder getting the property.
