What is a Real Estate Short Sale? Texas Short Sale Realtor Nancy Pasnik Explains

What is a Real Estate Short Sale?

A Real Estate Short Sale is when a homeowner owes more on the loan to the bank than the house can be sold for after closing costs, realtor commissions, taxes etc. Because we are in a declining housing market homeowners can sell their home via a short sale and a buyer can buy the home at a reduced price making it a win-win for the seller/buyer and the bank.  Homeowners should seriously consider a short sale if they are behind on their payments, owe more than the home is currently worth and want to move on and save their credit. Below is a possible scenario.

• The homeowner begins to miss payments
• The lender (s) try to arrange a repayment plan
• The repayment plan fails or is never achieved and the bank mentions Real Estate Short Sale

The important thing to remember is that a Real Estate Short Sale is much better on your credit report than a FORECLOSURE.  Nobody wants to lose their home on the courthouse steps. A Real Estate Short Sale puts a 1-2 ding on your credit rather than the 5-7 year of a foreclosure. To be successful in this type of transaction you need to work with a person familar with all the ins and outs of a short sale.Click here to contact me about your short sale situation now.

 Why would a lender accept a Short Sale?