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How does a short sale work - Just Commission Advance

5 Things to Know Short sales are an established option in the world of real estate. While rarely the first choice for those selling their homes, a short sale can be a useful course of action in the right circumstances.

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How does a short sale work - Just Commission Advance

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  1. HOW DOESA SHORT SALE WORK: 5 THINGSTO KNOW

  2. Short sales are an established option in the world of real estate. While rarely the first choice for those selling their homes, a short sale can be a useful course of action in the right circumstances.

  3. 1. How does a short sale work? A short sale occurs when, in simple terms, a homeowner sells a piece of property to a buyer for less than the total value remaining on the property’s mortgage. This results in no money going to the owner. Instead, as Investopedia pointed out, all of those funds make their way to the financial institution that owns the mortgage. In some cases, this means the seller still owes money to their lender and must repay it over an agreed-upon time frame

  4. 2. How long does it take for a short sale to go through? While the specifics can vary greatly from one case to the next, having an idea of how long the short sale approval and sale process generally takes is very beneficial. The Balance assembled an average timeline of a short sale, noting that the many steps of the process and the time required to address them often add up to a roughly three-month period between approval and closing escrow.

  5. 3. Why does the short sale purchase process usually take longer than a regular purchase? The term “short sale” refers to the deficit between the sale price and the value remaining on the mortgage – not the length of time it takes to complete the deal. A short sale property requires that the seller and lender for the seller’s current mortgage take additional time to document specifics and reach a mutually agreeable

  6. 4. Does the seller still owe money after a short sale? The answer to this question can change from one situation to the next. In some situations, a short sale will involve an agreement between the seller and their lender. That accord absolves the seller from an obligation to pay the difference between the home’s sale price and the amount owed on the mortgage. Laws in certain jurisdictions can protect an owner engaging in the short sale of their home from additional collection efforts by a lender.

  7. 5. What are the benefits of buying a short-sale home? A short-sale home offers buyers who can wait out the extended process an opportunity to potentially purchase a home at less than its full value. Careful review of appraisals and trends within the area are always important, but a short sale can present a valuable opportunity.

  8. CONTACT US 1601 LBJ FREEWAY, SUITE 150 FARMERS BRANCH, TX 75234 PHONE: 469-351-6205 FAX: 817-977-4633 EMAILID: CONTACT@JUSTCOMMISSIONADVANCE.COM WWW. JUSTCOMMISSIONADVANCE.COM

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