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Short Sales

In real estate, a ''short sale'' is when a bank or mortgage lender agrees to discount a loan balance due to an economic hardship on the part of the mortgagor.  The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender in full satisfaction of the debt.  In such instances, the lender would have the right to approve or disapprove of a proposed sale.

Extenuating circumstances influence whether or not banks will discount a loan balance.  These circumstances are usually related to the current real estate market climate and the individual borrower's financial situation.

In short; A short sale is nothing more than negotiating with lien holders a payoff for less than what they are owed, or rather a sale of a debt, generally on a piece of real estate, short of the full debt amount.

"Red tape" is very common in short sales, similar to REO and HUD properties, requiring potentially multiple levels of approvals and conditions.  Junior liens, such as second mortgages, Home equity lenders, may need to approve of the short sale. 

Short sale can be an excellent opportunity to acquire a property at a value below the current market but, extreme caution and patience is required. Guidance from real estate professional is very wise to guide you through the process.

Looking for a short-sale opportunity in the Florida Keys? Let Cheryl Moses and her Team at Action Keys Realty help you find it.

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