A short sale is when you sell a home for less than what the home owner owes on the mortgage. The mortgage lender agrees to forgive the difference and the home owner gets a chance to sell a home that he may no longer be able to afford. Short sales have become more common since the financial crisis of 2008.
Is a home buyer protected if the home he bought in a short sale sustains fire damage prior to the closing? Ilyce helps a reader sort out what kind of protection the home buyer has in a short sale - when the home owner's insurer has the home owner make the repairs himself. The home buyer's best course of action is to contact a real estate attorney to find out what protection he has since he bought the home in a short sale.
When you owe more on your home than it's worth you may want to do a short sale. In a short sale the bank forgives some of what you owe them. It's more cost-effective for a bank to do a short sale than foreclose on a home.
A short sale means that the buyer is offering less than what is owed on the existing mortgages. The funds in the deal will be "short" the amount needed to pay off all of the lenders and closing costs. To complete a short sale transaction, all lenders must agree to accept less than what they are owed.
When you're selling a home and you have two mortgages, you have to work with both mortgage lenders. Your mortgage lenders are among the parties who negotiate a short sale. If one of the lenders who negotiates the short sale does not agree, the short sale may not occur. Second lien holders such as PMI companies or HELOC lenders want to recoup some of their money and may scuttle a short sale if they're not included.
A buyer asks whether he can cancel a short sale purchase. He doesn't want to lose his cash in escrow if he cancels the short sale. He needs to check the details of his contract before canceling the short sale. To find out how to cancel a short sale he should contact a real estate attorney.
A couple asks the impact of doing a short sale on their credit history and credit score. A short sale is where you sell your home for less than the amount you owe on it to your lender. Your mortgage lender would have agree to take less than the full amount that is owed in exchange for allowing the sale to go forward. The couple's credit history could also be dinged if they file for bankruptcy, which they may do to dump a house. Either a short sale or a bankruptcy filing will hurt their credit history and credit score.
A family wants to sell its home but owes more on the mortgage than the house can fetch on the market and are considering a short sale. A short sale of a house means to sell for less than the mortgage balance. A short sale on the home might only make their problems worse, so they should think of other viable options.
Doing a short sale of a house means selling the property for less than the mortgage amount. It's unlikely that a lender will talk about the prospect of a short sale with a homeowner who is current on their mortgage payments. Completing a short sale will most certainly affect a homeowner's credit.
A homeowner wants to avert a short sale and asks his friends to buy his home. He asks them to lie to the mortgage lender about the price. Lying to the mortgage lender will put his friends in a bad position.