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A short sale, by definition, is where an
owner of a property owes more than the property is
valued and has to sell his or her home for various
reasons.
An example would be as follows:
A person gets fired from his current job.
He can't meet his payments and has to move. He
has a mortgage totaling $300,000. He
wants to move to Florida and start working for the
family business but, his current home value is
$260,000 due to the recent pull back in home values.
He has one of two options. Walk away from
the home let the home be foreclosed upon and damage
his credit with a foreclosure or negotiate with the
lender to reduce what he owes and allow the lender
to take a loss.
The lender will win due to the fact they don't
have to foreclose upon the property and add a
non-performing asset (Real Estate Owned - REO) to
their books. They also save huge amounts of
money on legal fees, property fix up, sale
preparation and time.
This is the information provided in the Short Sale
Play Book written by Ron Quintero.
Always feel free to contact me regarding any
questions you may have.
Mark Coffman
Mortgage Consultant
302-892-2811 x110
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