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Short Sale - In a short sale, or
pre-foreclosure, the homeowner's lender is
accepting a smaller payoff to release the mortgage. Just because
a property is listed with short sale terms does not mean the
lender will accept the buyer's offer, even if the seller does
accepts it. It is an alternative to foreclosure and
bankruptcy proceedings.
The
homeowner will need to be in default,
before the lender will consider a short sale. Also, kind in mind
that the seller may owe more than the home is worth, so a
discounted price might bring the price in line with the market
value.
When considering purchasing a short sale, always do your
research. Your real estate agent can find out who is in title,
whether or not a foreclosure notice has been filed and how much
is owed to the lender(s). This is important because it will help
you to determine how much to offer. If there are two
loans, you will probably deal with a second mortgage lender.
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FOR THE HOME OWNER
