Today’s poor economy has been particularly hard on the housing industry. Many homes are seen with sales signs, either having been foreclosed by the lender or being put up for a short sale. When this happens, in either case, the owner loses all their investment in the property. Short Sales Articles are a must read for owners, lenders and buyers of property.
When choosing to have a short sale, the owner puts the property on the market, open to any offers presented. When an offer, which is always less than owed, is received it is presented to the lender. They have the option of accepting the offer or going ahead with a foreclosure. There is usually a minimum amount set by the mortgage holder.
This type of sale is advantageous both to the bank, or lender, and the home owner. It means that the bank does not have to go through all the requirements, lengthy paper and legal work required when a foreclosure takes place. For the home owner it means that they are out of the loan obligation quickly and cleanly.
When a home owner wishes to have a short sale they contact a real estate person to list the property. This person will put it on the general bulletin for all realtors to see and show potential purchasers. There will then be the usual showing of the property. However, the minimum amount acceptable which is set by the lender but is open to negotiation.
There is no question that foreclosed or short sales properties represent a tremendous loss to the lender. However, with today’s situation, it is obvious that some people are not going to be able to keep up the large monthly payments they have made in the past. As a result, most of mortgage holders feel that getting something is better than nothing.
Investors are concerned about the number of foreclosure properties that are on the market. This makes these, and future foreclosures, difficult to sell, hence the acceptance of the short sale idea. For the prospective buyer this is a wonderful opportunity to obtain excellent properties at a low price, for the home owner it is a chance to get out from under an impossible debt and, for the lender, it is a chance to recoup at least some of their money.
The short sales program seems to be the only effective method of taking care of properties where the owner can no longer make monthly payments. Government programs which have been offered have done very little to take care of the foreclosure problem. Banks and lenders are willing to go along with the short sales as it takes care of the problem quickly and cleanly. Therefore it is a win situation for everyone concerned.
For more information please visit Paula Baker’s Cache Valley Homes website where you can search Cache Valley Real Estate.