What does possible short sale mean?

A short sale occurs when a homeowner in dire financial trouble sells their home for less than they owe on the mortgage. A short sale is a way for a homeowner and their lender to get out of a difficult financial situation by taking a loss, so it’s often possible for a buyer to profit by this transaction.

What is a short sale of residential property?

A short sale in real estate is one in which a house is sold for a price that is less than the amount still owed on the mortgage. It is up to the mortgage lender to approve a short sale. For the seller, the financial consequences of a short sale are less severe than those of a foreclosure.

What does short sale mean in real estate?

In real estate, a short sale is when a homeowner in financial distress sells their property for less than the amount due on the mortgage.

Can a real estate investor keep a short sale property?

A short sale shouldn’t be the first choice as it carries negative credit and, possibly, tax consequences. The real estate investor can alternatively: 1. Keep the investment property: If there no pressure for the real estate investor to sell, he/she can keep the investment property for the time being.

Who is required to approve a short sale?

In a typical property sale, the only one who has to approve the sale is the person who owns the property. In a short sale, this is not the case. The current owner is not the only one who must accept the offer.

Are there any disadvantages to buying a short sale?

Buying a short sale can be a great opportunity to get a property at a reduced price, but it can also have its disadvantages. Purchasing a short sale is a more complicated process than a typical home sale, so there are some unique risks involved when investing in this type of investment property.

In real estate, a short sale is when a homeowner in financial distress sells their property for less than the amount due on the mortgage.

Can You short sell your home to a family member?

If you can however show documented offers which have been lower than what your family member is willing to pay, along with proof of sale of similar properties in the area, and if the short sale process has taken more than a few months to close, a lender might reconsider allowing the exemption on the sale.

Can a mortgage holder take a loss on a short sale?

A short sale can only happen when all lien holders on the property agree to the short sale. Lenders holding second mortgages on the property (such as home equity lines of credit or piggyback loans) are also taking a loss on the sale.