What is a short sale?
A short sale is the sale of real estate where the amount of the sale proceeds are less than the amount owed to the lender on the property. Typically a seller enters into an agreement to sell their home short of the total amount owed but in the process does not incur a “foreclosure” on their record.
For example: If a property is worth $300,000 but the homeowner owes the bank $320,000 the bank may agree to a short sale of $300,000 (or less).
- The bank loses their $20,000 plus closing costs, but they don’t have to go through the lengthy foreclosure process, where they could lose additional interest and incur more expenses and or end up owning a property which may require many costly contractor repairs.
- The homeowner is freed from their negative equity mortgage(s), and avoids having a foreclosure on their record.
Benefits of a Short Sale
For a homeowner considering a short sale, understanding the benefits is vital to making the right decision.
A short sale:
- Can get a home sold quickly, even in poor markets
- Helps homeowners avoid a foreclosure
- Allows homeowners to own property again in a reasonable time (Faster than foreclosure)
- Is generally cheaper than a foreclosure
- Allows homeowners to have some control over the sale of their property
- Prevents the negative impact of a foreclosure on the homeowner’s credit score
Why choose to Short Sale your home?
The answer to this question depends on your situation. A short sale can help avoid a foreclosure, save time, and allows you to negotiate a sale of your home for less than you owe on it.
Some homeowners need to sell their house quickly, some are in danger of being foreclosed on, some want out of a home with negative equity.
Why banks approve the Short Sale of your home
Banks approve short sales because they are able to recoup a portion of their investment quickly, rather than having to wade through the foreclosure process, which could take months and cost the banks more in the end.
How can buymyhousenow.com help with my Short Sale?
For starters, we do all the heavy lifting. We negotiate with the lender or servicer to ensure a short sale price that benefits the homeowner, purchase your home as-is, pay with cash, and finalize a price/offer in as quickly as permitted by the lender.
Once a price has been negotiated, we take care of all of the required paperwork. You avoid the hassle of working with the bank, making repairs, paying closing costs, and you avoid a potential foreclosure.