Short Sale involves the arranging of selling of a property at a less than full payoff than duly owed with the mortgage company, and then the bank or the financial institution forgives the remaining loan amount that is when it is a typical approval. This helps save time, energy and cost associated with the consequences of foreclosure which is very lengthy. You may be able to postpone the foreclosure notice filed that you have while the bank considers your offer.
This process is something that homeowners need to understand. A Realtor with training and experience in this field is very important in the process. Having specialized training in foreclosure prevention can be of great value to the client in a short sale. Real estate professionals with the Certified Distressed Property Expert (CDPE) Designation have trained extensively to understand the options, solutions, and effective methods for dealing with homeowners facing hardships.
Homeowners trying to stop foreclosure or wanting to sell their home for less than full payoff can look at doing a short sale. Depending on their situation they may allow a property to go into foreclosure instead of attempting a short sale. The primary consideration above all is the effect both can have on your credit score. Your Credit having a Foreclosure without a doubt will incur more damage on the credit report by going through foreclosure. Short Sale has a far less damaging effect on a seller's credit report.
Basic principals. A short sale is when the sale proceeds of a house selling at market value less expenses fall short of what the owner still owes on the mortgage. Many lenders will agree to accept the proceeds and forgive the rest of what is owed on the mortgage when the owner cannot make the mortgage payments.
Dan Rubenstein, An Experienced San Diego short sale Realtor. Check www.sdlistinghomes.com for more info.