Short Sale, a far too common term in the housing market of today, often opens the door to many questions and apprehensions for both buyers and sellers alike.
A "short sale" is the potential sale of a property wherein the mortgage balance on the property is greater than the current market value of the premises. When this occurs, either the realtor or the seller's attorney negotiates with the bank to settle the debt for less than what is owed.
Although obtaining approval for a short sale can be a lengthy & complicated process, usually in the long run all parties involved in the transaction will benefit. A seller benefits because a "foreclosure" is not reported to the credit bureau. A homeowner is often concerned as to how this will affect his/her credit score. According to information provided by credit reporting agencies the impact on the credit score is substantially less than that of a foreclosure, as most of the impact is caused by the late/missed mortgage payments, not necessarily the reporting of the debt being settled for less than what was owed. A buyer benefits because these properties are usually sold below market value, as that is the incentive to hold on an d wait for the bank to approve the sale. The bank benefits because they don't incur all of the expenses of taking a property all the way to Sheriff's sale only to resell the property for the same value.
It is important that you work with a Realtor that is experienced with the ins and outs of the short sale process, as this will increase your chances for a successful result. We have experience in the process. If you are looking to purchase a short sale property in Monmouth or Middlesex County, or if you have a home that seems as though it may need to be sold "short", let us help you handle the details. Call Leanne @ 917-596-2772 or Anna @732 371 3233 at Robert Defalco Realty to discuss your situation.
Article courtesy of Valerie Vargas and Robert Defalco Realty Website
