Some advantages of a real estate Short Sale-for the owner of the property.

A real estate short sale takes place when the owner of a property and its real estate lender, agree to sell the estate to third parties for less than is owed to the lender.

The owner gets permission from your lender to sell a property with a value less than what is owed on the property. Typically, the creditor/bank loses thousands of dollars. In most cases, this process is the last step before a home owner loses his house to foreclosure. A short sale credit damage and can consume hours property owners so why anyone would elect to proceed? Because the alternative may be worse. A homeowner who is behind on mortgage payments could possibly be experiencing exclusion.

If a lender agrees to a real estate short sale, the seller may still owe the lender the difference between the loan amount and the value for that property is sold. Depending on the amount, it can still be a better choice than a closure. Foreclosures and short sales, both affect the credit score and the ability to buy a House. With a closure, a credit score can be equal to or exceeding 250 points. Both processes may cause problems when the seller intends to acquire other property. It can take up to two years for lenders offer decent interest rates after a shutdown. Having a short sale on its registry can only slow down the process of approximately 18 months before seeing the interest rate good offers. Maintain a decent credit score is a great advantage to avoid a foreclosure.

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