The Real Estate Skills Blog
Articles For Achieving Financial Freedom Through Real Estate
What Is A Short Sale In Real Estate? What’s The Process?
With a whirlwind of information out there, the short sale process can become very confusing and tedious to accomplish. In this article we will break down the core concepts of a short sale in an easy to understand step by step process.
What is a Short Sale in Real Estate?
Short sale refers to a real estate sale where the net proceeds of a property sale fall short of all debts that liens have secured against that property. In other words, it’s the sale of a property at a price less than what the current owner owes.
For instance, the amount owed by a homeowner can be $500,000 on a mortgage. However, the value of the home in question can be $400,000. As such, there is a negative equity of $100,000.
But, why would a lender agree to a short sale? Well, lenders are in a money making business. They are not interested in owning homes. When a lender takes a property back and forecloses it, the property is considered a non-performing loan.
Therefore, this...
Free Training!
Access the free training on how to find & flip your 1st house using little to no money! (Some attendees flipped their first house in 21 days!)
Stay connected with news and updates!
Recent Posts
Author
Alex Martinez
Real Estate Entrepreneur
Want To Get Your Real Estate License?
Real Estate Skills recommends Real Estate Express for getting licensed. Click the button below to get started.
Topics
All TopicsFree Training
