Stop Foreclosure with Real Estate Short Sale

Foreclosure is a major problem in the real estate market nowadays with lots of people losing their jobs. One way to stop foreclosure is to do a short sale. When there is no hope that a homeowner can pay his or her mortgage payments, a real estate short sale may be a sound solution for the homeowner. You do not have to wait until you are late on your house payments to start the short sale process. Find out what is a short sale and consult a Realtor early about the possibility of doing a short sale when you know that you will not be able to keep up with your mortgage payments soon.

Understanding What a Short Sale is

A short sale is a sale of real estate in which the proceeds from the sale are smaller than the mortgage balance on a loan secured by the property sold. In a short sale, the bank or mortgage lender accepts an amount that is less than a balance of a loan because of an economic or financial hardship sufferred by the mortgagor. This negotiation is often done by communication with a bank’s loss mitigation department.

How to Stop Foreclosure

A short sale is usually done to stop foreclosure. Often a bank will allow a short sale if they think that it will result in a smaller financial loss than foreclosing as there are carrying costs that are associated with a foreclosure. A short sale is typically faster and more cost effective than a foreclosure. In short, a short sale is just a process of negotiating with lien holders a payoff for less than what they are owed, or rather a sale of a debt, generally on a piece of real estate, short of the full debt amount. It does not extinguish the remaining balance unless the bank expressedly states it in writing.

Learning about Short Sale

There are many books on the subject of short sale. Some books are for homeowners who are in foreclosure. These books explain to them what a short sale is and how it can help them save their properties from foreclosure. There are also books for investors trying to take advantage of the foreclosure market. Foreclosed homes are usually cheap so new home buyers and new real estate investors can buy them fairly easily. Examples of books on short sale are The Art of the Short Sale, Short sales: An Ethical Approach, Doctor Foreclosure: The Secret to a Successful Short Sale, and Short Sale: A Practical Approach.