"Short sale-noun: Negotiating with a lender for less than is owed"

. 
 What triggers a Short Sale?

 

-Usually Property owners are Behind in mortgage payments.
-Property Owner cannot afford to keep the property any longer, due to adjustments in the mortgage payments,loss    ofemployment,or any other hardship.
-Prooperty has no *equity(Property Owner will net less than is owed to the Lender, putting him/her at a deficit and he/she would need to bring Thousand of dollars to the closing table to make up the shortfall. 

Short Sale, is a  way that property owners that find themselves in any one of these predicaments  can use to save their  credit and avoid floreclosure.  

 

Who benefits from a Short Sale?

-Property Owners who are behind their mortgage payments, or have received a notice of default. Lenders  file a "List Pendens" in Court to initiate the foreclosure. Once the notice of default has been recorded, it will usually take 6 to 9 months from the  date of the first payment missed to the day when the home is sold in public auction.

It makes sense to take action, and exit  the situation in the best possible shape. Homeowners that find themselves facing a financial hardship should consult  an experienced Short Sale Real Estate Broker and a Real Estate Lawyer. . If a homeowner neglects taking action, and allows home to foreclosure, it will cause the greatest damage to their credit: it will take a hit of 250 to 280 points. A credit score of 680,  can go as low as 400! Such a low score  won't be able to buy anything significant for a long time. It will take at least 3 years for lenders to offer an interest rates that makes any sense.

www.flasunquest.com

 

 http://www.realtor.org/realtors/basics_short_sales?wt.mc_id=rd0041