Short Sales Defined

Short Sales Defined

What is a short sale? It is a sale wherein the lender accepts the mortgage discount to evade possible foreclosure on the property for auction or bankruptcy. As a buyer, you are not going to purchase from the seller but instead, you are buying the property from the lender directly, and yes, as mentioned previously, with a discount. So why are lenders okay with discounts on their properties? Well, first and foremost, banks are not in to extra inventories and bad loans so if ever they see chances wherein they can have the property sold without big loss, they will certainly do it. Also, lenders know very well that if their property is up for auction, they will lose more cash. You see, many fees are actually involved if ever the property will go to the auction so lenders believe that they are definitely better off with the discounted price rather than bigger money loss.

Today, it is not surprising that foreclosures are definitely at their peak and that would mean that there will be more opportunities for everyone – for you. Since foreclosures are at their best, this is definitely the best time to learn and start as there will be more lenders offering their properties with the best discounts. You surely wouldn’t want to miss on that!

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