In Real Estate, What is a Short Sale?

There are few options available to homeowners when they are facing foreclosure. Since foreclosure inevitably scars a homeowner’s credit for many years, anyone searching for ways to prevent foreclosure should investigate the option of a real estate short sale. Basically, a short sale involves a lender who agrees to take less than what is owed on a mortgage. Although it involves a certain amount of extra work, it can be a winning situation for both homeowner, lender and ultimately a buyer. When a lender is faced with a large amount of foreclosures, their financial health begins to deteriorate. They are in business to make money closing loans and servicing them. Owning too much real estate stops a lender's flow of money, in addition to costing a lender additional legal fees. While all lenders won't be willing to engage in a short sale, it's worth a try for homeowners facing foreclosure. In order to be considered for a short sell, homeowners must meet certain qualifications. Mortgage payme ... more

A short sale - The homeowner gets permission from the bank to sell the house for less than what he still owes on it. This can get complicated... stay away from it. REO - Real Estate Owned (Bank Owned) The house already went thru foreclosure but nobody bought it at the foreclosure sale and now the house belongs to the bank. This is the best deal for you. There are no hidden liens or mortgages on the house and the bank usually sells it for a bargain. Banks are not in the Real Estate business and do not want the added expense of keeping the house in shape. Make sure that you have the house inspected, etc. before you decide to buy an REO. Good Luck. ... more