An increasing number of individuals is presently in danger of having their properties foreclosed by their mortgage lenders.  This goes to show that the mighty real estate is not spared from the recent world economic crises.  In fact it’s one of the most heavily affected.  Either as a buyer or as a seller, one is directly hit by the crises.  Thus, like any business entity, one is in dire need of a bail-out plan to save such investment.   

A handy remedy for this scenario is the real estate’s own-version of a bail-out plan the, short sale purchase.

The Short Sale Purchase mechanism works in way where the existing soon-to-be foreclosed property is sold at a lower value to an interested buyer by the property owner, with the concurrence of the mortgage lender to an interested buyer.  It may sound as easy as it is.  But there are some considerations to fully consummate the transaction.

The Mortgage Lender, whom the soon-to- be-foreclosed property, is under mortgaged plays a major role in this transaction.  For one, it dictates at what price the property is to be sold; it, likewise, determines whether the buyer is qualified to enter such sale transaction; if indeed the buyer is qualified, it further examines whether there are available co-debtors, relative to the remaining balance of the loan mortgage value, since the property will be sold at a lower price than that of the original mortgage value;  finally, it will determine whether the property in consideration is qualified for a short-sale transaction.

The property owner, on the other hand, is the initiator of the short sale transaction.  At the onset, being the owner, he has to execute a HARDSHIP LETTER to the mortgage lender.  Once approved by the mortgage lender, he now acts as the offeror or the seller of the property to any interested buyer.  In selling the property, the property owner/seller has to ensure that all terms and conditions, including the price/value of the property should equate with what is approved by the mortgage lender.

The Short Sale Purchase is considered as an of the many easy bail-out remedies for any soon-to-be-foreclosed properties.  However, one must not immediately succumb to such mechanism without proper information.  Hence, it is always advisable to consult with any real estate professional prior to any engaging any of such transactions. 

This entry was posted on Thursday, January 14th, 2010 at 9:25 pm and is filed under Lender Approved Short Sales. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.