Understand What is a Short Sale

If you are not able to pay back the loan you will have to face the foreclosure. How true is this line? Is it a must? Or there is some other way to avoid it. The answer is yes. You can really avoid foreclosure if you are ready for short sale. Now the question arises what is short sale. For your knowledge I must tell you that a short sale is a method which can save you from the headache of foreclosure. It is the legal process which is carried on when the lender agrees to sell the property in fewer amounts than the actual cost of the property. It might be that the value of the property in the market falls below the actual process and it might lead to a situation where the owner might realize that he is not even able to pay back the mortgage amount which he has taken while buying the property.

There can be many reasons for the bankrupts of the owner. He might have suffered a loss in his business or he might have lost his job. He might have got injured due to some accident and would have lost lots of money in hospital. In fact he can have endless list of reasons. However he will be required to explain the reason to the lender. Believe me that no lender is so inhuman that he will not understand your problem. I really recommend that if you have any reason then put it forward in front of the lenders and present it in good words. I assure you that the lender will surely understand your problem and will be ready to help you. He can only help you through the short sale. He will really accept your request for short sale.

What is the process after lender agrees for short sale?
If the lender is ready for short sale then the next step is to search for the buyer. You will be required to do an advertisement and make sure you find a buyer very soon. The next step will be to put forward a proposal in front of lender. You must make sure that all the documents are properly placed in the proposal. If this is not the case then the lender might not agree with your proposal. Hence both the buyer and the seller should make sure that everything is properly placed.

I have told in the beginning that lenders are also human being. However you should have appropriate reasons for the lenders to show their humanity.

Advantages of short sale
Short sale has many advantages. The first and the most important advantage is that you are able to safeguard your credit score. The second but not the least advantage is that you are able to avoid the headache of foreclosure.