Understanding Short Sale

April 8th, 2010

A few days ago I was talking to a friend of mine who lives in Southern California and she mentioned the word short sale. The second she mentioned it, I wasn’t sure what she meant, so I stopped her mid-sentence and asked if she’d explain it to me. Luckily, for me she was more than happy to oblige my lack of knowledge.

She said that because of all the problems with the economy these days, there is obviously a huge amount of homes where familes have come into financial problems and are no longer able to pay their mortgages. They also owe more than the property is worth in many cases and some are on the brink of foreclosure. Rather than having the bank or lending company forclose, a short sale is possible, which allows the lender to accept less than is owed on the property when being sold to a third party. It’s much easier to repair the credit report after a short sale than a foreclosure.

These are things that I never knew, but I definitely found it interesting to know and also helpful for anyone who could possibly be in that situation. I don’t know about you, but I love learning new things, especially things that can help benefit me or others.

2 Responses to “Understanding Short Sale”

  1. Bobby says:

    It is a tool that can also bite you in the rump with the loss. I sure do confess to missing jayess.

    I have missed you. I follow your blog but get a little lazy inputing all my info to leave a comment.

    Summer is here already. It improves my affect instantly.

    Love ya,
    Bobby

  2. admin says:

    Hey Bobby, I miss you too but was happy to see you writing again. Ahh once you input the info once it should save and you shouldn’t have to do it again. At least that’s how it’s supposed to work :)

    I am loving the warmer weather and SUNSHINE. We’ve had so little of that lately.

    *hugs*

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