June 07, 2012

Curious about short sale

My cousin in North Carolina got their new house through short sale. I'm a newbie with the short sale term in real estate so I asked her to explain the process of short sale. In her own words, she explained it but I'm still curious about it and asked her more questions. She admitted that she's not good with it because it was her hubby who did most of the transactions so she told me to check on outer banks homes for sale and check those featured short sale properties so I could have ideas. My curiousity was kicking me so I googled short sale and read some information that helped me to understand. According to what I've read short sale is when an lended accepts a discount on a mortgage to avoid possible foreclosure auction or bankruptcy. You're buying the house directly from the lender which is usually banks and not from the seller. Lenders such as banks would consider and approve short sale because they don't want to have additional inventory of properties and post entries to their bad loans. It's ok to give a discount than keeping it and maintain it that will incur more expenses and if it's brought to auction, there are lots of fees involved.

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