Foreclosure Short Sales: Benefiting Everyone Involved

Are you a homeowner who is at risk of losing your home due to foreclosure?  Are you an individual who is looking to buy an affordably priced home?  If you are, foreclosure short sales should be examined.  Foreclosure short sales are a process that benefits everyone involved, including current homeowners, homebuyers, and mortgage holders, also commonly referred to as financial lenders.

Before examining how foreclosure short sales can benefit you, it is first important to familiarize yourself with the process, namely how they work.  Generally speaking, a homeowner who is unable to make their current mortgage payments on time, for whatever the reason, approaches their financial lender looking for assistance.  If it is decided that on time payment cannot be made anytime in the future, the option of having a foreclosure short sale may arise.  When it does, the home is listed for sale through a real estate agent and often for a fraction of the price.  Typically, most financial lenders at least aim to recoup the money owed to them. 

From the standpoint of a homeowner, this can assist you if you are at risk for losing your home.  Although you will still need to relocate, you will likely find your credit left in tact.  If your financial lender is able to recoup the amount owed to them through the sale of your home or if they agree to reduce the amount owed just for the purpose of a foreclosure short sale, your credit should not take a negative hit.  Depending on your financial lender, you may be able to live in the home until it sells, paying as much as you can pay towards your mortgage.  Although a foreclosure short sale will benefit mortgage holders, many will not outright suggest this option; therefore, you may want to do so yourself.

From the standpoint of a homebuyer, there are a number of benefits to purchasing a property that is being sold as a foreclosure short sale.  Unfortunately, most homes are not marketed towards buyers as being one, but there are a number of signs that you can look for.  For example, most short sale homes are sold in “as is,” condition and most are lower than the other homes currently for sale on the real estate market.  In fact, the home may be priced less than the assessed property value.  With that said, unlike the buying of most traditional foreclosed properties, you, as a buyer, may take comfort in doing business with a real estate agent, as opposed to bidding on a foreclosed property at an auction.

As a recap, many mortgage holders prefer recouping all or at least a good portion of their money when dealing with homeowners who can no longer afford their mortgages.  For that reason, if you are a homeowner who has no other options, be sure to approach your financial lender inquiring about foreclosure short sales.  On the other hand, if you are a homebuyer who is looking to find a nice home, but for an affordable price, be on the lookout for these short sales.  They are typically easy to spot, but a real estate agent can also provide you with professional knowledge and insight.