A short sale might sound a bit confusing, but it is actually a common real estate process. If a homeowner owes more on their mortgage than what their home is currently worth, they may want to sell the home as a short sale. This means selling the property for less than what they owe on the mortgage, but they need the lender's approval to do so.This can help avoid foreclosure for the seller while giving the buyer a chance to purchase a home at a possibly lower price. Below, we will explore what a short sale is and how it affects both buyers and sellers in the American real estate market. Understanding a Short Sale In a short sale, the homeowner and lender work together to agree on a sales price that is below the mortgage balance. Because the lender must approve the offer, it can take longer to finalize than a regular sale. However, if accepted, it allows the seller to move on without having a foreclosure on their record. This process can be less damaging to the seller’s credit score than a foreclosure, which is a major benefit for those wanting to protect their financial future. Impact on Sellers Impact on Buyers Short sales can offer advantages for both buyers and sellers when handled correctly. Sellers can avoid foreclosure and protect some of their credit standing, while buyers may find a good price on a property. However, short sales also involve patience and extra steps. Working with us can make the process easier and smoother. If you are considering a short sale, take the time to understand each step so you can make the best choice for your financial future.
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