Short Sale Home

Short Sale

      A short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property and the property owner cannot afford to repay the liens' full amounts, whereby the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt. Any unpaid balance owed to the creditors is known as a deficiency. Short sale agreements do not necessarily release borrowers from their obligations to repay any deficiencies of the loans, unless specifically agreed to between the parties.

      A short sale is often used as an alternative to foreclosure because it mitigates additional fees and costs to both the creditor and borrower; however both will often result in a negative credit report against the property owner.

How to Buy a Cheap Foreclosure

       There is often a huge disconnect between the way a buyer views an opportunity to buy a foreclosure and the real world of bank-owned homes. If a home buyer or an investor wants to buy a cheap foreclosure, it's easy to assume that all foreclosures sell for pennies on the dollar. However, that impression is false. It is not how foreclosures work.

       When buyers watch TV news reports that sensationalize foreclosures or read headlines that foreclosure filings are increasing, it's normal for buyers to automatically jump to the conclusion that banks are desperate. Buyers tend to believe that banks will do anything to unload foreclosures, including letting the buyer buy that foreclosure for 50% of its value or less.

Tips for Buying Your First Home

5 Essential Things You Need for Home Buying

1. Hire an Agent

2. Find a Home to Buy

3. Get a Loan

4. Negotiate the Offer

5. Do a Home Inspection