Short Sale Benefits

What are some benefits of short sales? Take a quick look!

The Seller avoids having a foreclosure on their credit
It can help the seller get out of a frustrating position
A home doesn’t have to be abandoned
The short sale buyers gets the property at a good price and is typically in better condition than a foreclosed home.
The bank gets more money and it minimizes their costs
The bank does not have to seize, evict, manage, clean-out, maintain or resell the property which can yield big savings to the bank.
The Neighborhood is spared another boarded up vacant foreclosure
Other sellers in the neighborhood are spared the stigma of a foreclosed home which could bring down the property value for the neighborhood.
Owners trying to refinance or sell their home will have their home appraised higher by being spared having a foreclosure in their area
The Realtor can sell the home at a lower price due to the short sale status.
The seller can be eligible, under Fannie Mae guidelines, to buy another home in 2 years instead of 5 years.

What are the negatives of a short sale?

There is no guarantee that the bank will accept the short sale offer.
Waiting for the bank to respond can be very frustrating.
The lender will want to examine the seller’s personal records to determine short sale eligibility: tax returns, bank accounts, assets and a hardship letter
The credit mark will remain on the credit report for up to 10 years.
The courts get less money with fewer foreclosures
Law firms that do foreclosures make less money
Companies that board up homes make less money
Foreclosure auctioneers also make less money.
Collection companies make less money.
Criminals who attack vacant homes make less money
Scrap yards that accept stolen cooper make less money

Real Estate Short Sale Guide