Short Sales
A Short Sale happens when a borrower owes more on a home than the property is worth and the lender agrees to a sale price that is short of the amount owed. It is not uncommon for short sales to take between three and nine months from the time the offer is initially submitted until the closing. A successful short sale can benefit all parties. Sellers benefit as they avoid having a foreclosure on their credit. Buyers benefit as they can buy properties for less than market value. Lenders benefit as they can avoid the time and expense involved with a foreclosure proceeding. Once a bank forecloses on a loan, the loan is considered a bad loan and this affects the lending power of the bank while the bad loan is on their books. A short sale allows the bank to avoid this situation as well as the cost of a foreclosure and the expense of maintaining a property if it is bought back at auction as an REO property. Your Innovative Realty Agent can help you navigate and negotiate the process of a short sale.
