What is a Short Sale?

Due to the current mortgage crisis many homeowners are unable to pay off their mortgage. They may have taken an interest only loan or the value of their property is now lower than the original loan amount. These situations can put you at risk of home foreclosure. One solution would be a Short Sale which is the sale of your home at a low price.

Remember, the bank would rather have your money than have to sell your property. Many lenders will work with you on a short sale since everyone benefits.

There are mortgage foreclosure specialists and buyers who work as facilitators of short sales. The specialists would write up all the paperwork involved, including the contract of sale. The contract would contain the offered amount and all the conditions involved in the agreement. Also included in the contract is a hardship letter indicating the reason why you can't pay for the property and how the short sale can be beneficial to the lender.

The advantages of a short sale are:

1. Save your credit history.
2. A solution to an embarrassing situation.
3. Alleviate the stress of finding the money to meet financial obligations.
4. A fast solution to mortgage foreclosure.

In today's housing market, there are tons of property inventories that cause the banks to lose a lot of money each day. The whole foreclosure process can be a long and tedious one for the lender. For the borrower, it is a stressful, embarrassing, and dreadful experience. Short sale could actually stop the mortgage foreclosure process involved and benefit all parties involved. Through it, the lender gets his money from the sale and the homeowner can walk just away from the property that he can't pay for any longer. The buyer gains advantage too as he ends up buying a good property at a discounted price.

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