When a lender releases an existing mortgage for a payoff that is less or ‘short’ of the total amount due, the transaction is called a ‘short sale.’ Lenders sometimes accept short sales as an alternative to repossession and foreclosure, which can be expensive. Likewise, a short sale avoids foreclosure and credit-rating reductions for the seller. Short sales may be prompted by a seller’s inability to make payments, or the property value dropping below the mortgage balance – ‘underwater’ – or possibly both. Short sales are usually initiated by the homeowner, but lender approval is required to proceed. Buyers typically negotiate short sales with sellers, but lender approval is also required to finalize a short sale. Short sales are more complex and may take longer than conventional purchases.
 

TitleTap

TitleTap

TitleTap provides turn-key websites and marketing tools like Video, Social Media Management, and Email Marketing for Title Agents and Real Estate Attorneys. Get more great marketing tips like this specifically relevant to Real Estate, Title Insurance, Mortgage Lending, and Law by subscribing or visiting our blog above.
TitleTap

Related Post

Referrals Are Awesome! Are You Leveraging Referrals to Grow your Law Firm or Tit... Your current customers and clients are your biggest fans...are you asking for referrals on a consistent basis? If not, it’s time to get busy! The advantages of working by referral are obvious, so why don’t we do it more often? It’s incredibly cost effective, it usually shortens the average sales ...
Understanding Wills and Trusts http://bucket.wistia.com/medias/jkzwm0yem0?embedType=async&videoFoam=true&videoWidth=640 A will is a written document that defines how your assets will be distributed after you die. Trusts are legal arrangements that involve a separate legal entity to hold and distribute assets -- during y...
What do the CFPB and Google Have in Common? What do the technology giant Google and and the Consumer Financial Protection Bureau (CFPB) have in common? Keeping pace with the changing landscape of business in the era of the internet, its risks and rewards, has made it more difficult for title agents to continue doing business the way they alw...
Don't Go At It Alone. Download The Free PDF!"10 Uncommon Questions to Ask Before Hiring a Web Designer"

All websites are not created equal! Download a free PDF with all of the questions you need answered BEFORE hiring a web designer.

Download Now