A Short Sale is the sale of a home when sales proceeds do not fully pay off the existing loan(s) and lender(s) accepts a discounted payoff to fully satisfy the loan.
The best part, the existing lender pays virtually all sales costs, including commissions, escrow and title fees and repair costs. Home owners get their home sold, the loan(s) paid off and avoid foreclosure.
Is specializing in Short Sales right for me?
Mortgage lenders are increasingly willing to work with borrowers faced with a financial hardship to accept a discounted payoff on a mortgage. If they are faced with a hardship that makes it likely they will be unable to meet the obligation on the mortgage, the lender would prefer to settle the matter as opposed to taking the property through foreclosure. Real Estate Agents are key to this process as investors need help selling these quickly. Short Sales Agents can also negotiate the discounts with the banks and earn additional income.
As you consider the option of pursuing Short Sales, remember lenders are looking to limit any potential loss on these loans and with foreclosures on the rise, they are seeking more educated agents for help. By completing Short Sales, a lender has arrived at a solution that is, for them, much better than a foreclosure.
Bottom line, lenders need more help with Short Sales.