Short Sale – Willingness and Benefits of Seller and Lender – Better Option Than Foreclosure?
March 7th, 2010
Willingness is a most important tool which is used throughout the world for everything people buy, sell, need, produce, and invent. Willingness is also known as the mother of invention and creations. Will or willingness of people for doing any action must have great reasons. In case of real estate mortgage, it’s on parties to go for foreclosure, short sale or any other option. Short-sale is the hot choice of both parties these days. What is a Short-sale and why is it hot these days? When the owner agrees to sell a mortgage property and Lender agrees to sell at a discounted price than the original, that’s a Short-Sale.
In this type of Sale, willingness of seller (a homeowner) and lender (commonly a Bank or Mortgage house) is very important. It is a hot choice for both seller and lender for specific reasons. It is a good choice for buyer as if somebody is behind in mortgage a payment, losing a house is never be a good choice. It allows the person to sell the house for less than the person owe on it. Homeowners, with Short Sale do not need to worry about credit ratings, debt obligations and moreover they avoid foreclosure and bankruptcy.
Lender (Bank or Mortgage Company) also find it a better choice because of some benefits and reasons. When the lenders foreclose, they become responsible for that property and need to get rid of it in any manner. Most of these lenders already have good number of foreclosed properties and they don’t want to increase the number. Leaving an empty property is again not a good choice because empty properties can have damages, fire and natural disaster by which they can loose everything. Lenders do find Short Sale a good choice for all the reasons and want to get the money in complete.
Short-Sale does require some documentation as for all other types of businesses and people must not be afraid of these documentations. Real Estate staff and companies are always a good choice for this type of sale. They can provide people with documentation help, advice, and legal contacts from where everybody can get satisfaction of the transaction and discuss taxation matters. Banks and mortgage houses are allowing more Short Sales these days than any other time, and the percentage ratio of short sale is higher. Short sale is a type of settlement by which the credit rating is much less affected than to foreclosure.
Short-sale is a time consuming task but is more reward providing than foreclosure and bankruptcy. It is important for sellers to choose a good real estate company or agent for Short sale and work according to their guidance. Willingness of both seller and lender for Short sale is very important as the process may be confusing. Seller must provide the hardship letter against loan and should prove that he / she is unable to pay mortgage loan. It earns much better results for both the parties and both of the parties get something better than any other choice like foreclosure.
Asad Zeeshan Consultant
Asad Zeeshan
Management Consultant Pakistan
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For more videos on short sales check out Kevin and Fred on the Short Sale Power Hour. Video for Short Sale Specialists.
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Fred Weaver is a founding co-owner of Group 46:10. He has been working in the financing/real estate business for over 7 years. Fred began his real estate career by working for a large wholesale bank as a processor and rate/lock specialist for home mortgages. After 2 years in the business, Fred transferred from the banking side of home loans to the mortgage side. While on the mortgage side of financing, Fred gained experience originating mortgages and processing files for Morgan Capital of Arizona, Inc.
Kevin is a founding co-owner of Group 46:10. He began working in the real estate business in 2007 after spending 8 years working in the finance industry for companies such as Bank One, Green Tree Financial, & GE Capital.