Short Sale SellersBenefits of a Short Sale
A short sale is when a lender agrees to accept less than what is owed on a mortgage.
The benefits to the seller of the a short sale property is that they avoid foreclosure by selling their home before a foreclosure auction.
The lenders also benefit, because they can get the bad debt off their books. If a lender has delinquent loans on their books, it will affect how much money they can lend out in new loans because they are regulated by the FDIC. The more bad loans they can get rid of, the more good loans they can acquire. In addition, the lenders will lose 35-50 thousand dollars and it will be a huge cost saver to short sale the home instead of foreclosing on the property.
In addition, the home buyers benefits by getting a home at a lower price.
The real estate investors also can win out, because in today’s market they are getting a lot of listings with no equity but can turn the “weak” leads into strong commission, of course if they have a good background in short sales.