Ask the Advisor – What are short sales, and why are they so popular?

Description

Abstract: Short sales are a form of preforeclosure where a home sells for less than the mortgage amount. A homeowner facing foreclosure may benefit from a short sale because it reflects more favorably on the owner’s credit report than does a foreclosure. When the numbers are right, banks also benefit from short sales, because they avoid the hassle and expense of foreclosure. A real estate investor purchasing through a short sale wins too, because it’s getting a home at a discounted price. But getting one isn’t a given; there are requirements that must be met, and steps that investors should take to improve their success in negotiations.