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A Short Sale Has Benefits – No Matter Which Side You’re On

With the economy suffering, a real estate short sale is something that’s becoming more and more popular. And, with a short sale, there are benefits for everyone involved.

What exactly is a short sale in real estate?

If a homeowner is in some sort of financial trouble, he can sell his house for less than what he actually owes to the bank. In doing so, the homeowner can stop trying to make monthly payments he can’t afford, and he avoids foreclosure – something that can ruin his credit and prevent him from getting another loan for 7 years. For more information click here

A short sale is great for the buyer, because he gets a house at a price that is far below market value. It can take a long time for a real estate short sale to get finalized, but, usually, the wait is well worth it.

But what about the lender? What’s in it for them?

The bank will take a look at the homeowner’s situation – and assess how bad his financial problems really. If the issue is severe enough, the bank will usually approve a short sale. Yes, the bank winds up losing some money on the deal. However, it’s usually better than foreclosing on the house. If the bank takes over the house, they have to deal with selling it, and they have to pay costs associated with taking it over. In the long run, a short sale can actually be more cost-effective for the bank than foreclosure.

While it may start off as a bad situation, a short sale can have a happy ending for everyone involved! For more information click here