Short Sale
A short sale is the selling of real estate at a price lower then its mortgage. This is because it has a current market value less then the amount of money owed on it. In a short sale the borrower needs to enlist a Realtor experienced in the short sale process. The Realtor will meet with the borrower to discuss establishing the current market value of the property, the marketing strategy and how they will work with the mortgage lender to reach agreement on an approved sale price. In order to successfully negotiate a short sale with the mortgage lender the borrower must establish they are experiencing a true financial hardship and can no longer keep up with their mortgage payments. The mortgage lender may agree to approve selling the property at a discount but this decision does not always release the borrower from the obligation to pay the remaining mortgage balance known as the deficiency.
Because a short sale is less expensive then a foreclosure the mortgage lender is usually agreeable to a small loss, the borrower can sometimes mitigate the damage to their credit report and the buyer can purchase a well-priced property in good condition, many times in much better condition then a foreclosure that may have been abandoned.
For more information on our short sale services contact L.A. Metro Home for a one on one consultation Contact Us.
