A Short Sale occurs when the mortgage lender(s) agree to accept less than a full payoff of a homeowners loan balance, and writes off the remaining balance as a loss. The amount the bank accepts is usually based on current fair market value and not the actual loan amount. For instance, a homeowner bought their home for $300,000 in 2007; they get an offer of $185,000 from a pre-qualified buyer, the bank counters back at fair market value and the home sells to the buyer for $200,000. The seller of the home does not pay for any of the title and escrow fees or real estate commissions; the short sale lender pays those costs of sale. The seller saves some of their credit worthiness and avoids a public foreclosure plus they may qualify for relocation assistance from the lender to help them move. The buyer gets a good deal on their new home plus they get disclosures from the seller to help them understand what they are buying, unlike a foreclosure property.
If you are considering buying or selling real estate in either Nevada County or Placer County, California we have some great online services for you to use. Short sales require special knowledge so we invite you to take advantage of our knowledgeable staff to buy or sell a Short Sale as safely and expediently as possible.
Buying a home? To receive the latest short sale listings to preview online and a list of items you should expect to provide when writing an offer on a short sale click here.
Need to sell? To receive a free online consultation to see if you qualify for a short sale or other foreclosure avoidance assistance click here.