Many people struggling to pay the mortgages are motivated to consider a short sale. I am often told that it is considered because of their concern that if a short sale is not done, and the property is allowed to foreclosure, they will never be able to own a home again. Today, I want to tackle the perception of that…and present a bit of reality, from my point of view.
Posts Tagged ‘Short Sales’
The Short Sale Option
Sunday, February 7th, 2010
A short sale is when a homeowner sells property, but for less than the amount due on the outstanding mortgage. The lender agrees to release/discharge the mortgage on the property to allow the property to change hands to a new owner. Now, there seems to be a belief out there that short-selling a property is better than allowing it to slip into foreclosure. I’m not going to agree or disagree on this – because what’s good for some people, is just not good for others. But since there is a resurgence of media reports that former homeowners are “surprised” to learn they are still responsible for their debts to the bank even after a foreclosure, I thought I would revisit the subject and list out some pros and cons as well as perceptions and realities. (more…)
Are Short Sales Just Silly?
Friday, August 15th, 2008
It’s a question I have been asking myself of late. A Short Sale is when a lender (the mortgagee) agrees to release the mortgage from the property so that it may be sold to a buyer for less than when is owed on the mortgage. I am hearing that many people are exploring short sales as a means of “avoiding foreclosure.” But there are many variables that will make a short sale successful, and unless all of those variables are working in the homeowners favor, the short sale is not a good idea.