A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property's loan. It often occurs when a borrower cannot pay the mortgage loan on their property and the lender decides that selling the property at a moderate loss is better than pressing the borrower. Both parties consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the borrowers. With 1 out of 7 mortgage loans under water, this process is becoming a very viable solution to these lenders and borrowers alike, in order to stop the foreclosure crisis.
Foreclosures have steadily increased due to the recent mortgage crisis and current economic challenges faced by many consumers. Inflation is on the rise while home values remain flat or in many cases lose value. This growing epidemic is flooding the market with more listings than what the public demands. Homeowners are looking for advisement and assistance from experts who care. Today’s real estate professionals can provide the proper guidance and education to today’s homeowners who fear the threat of foreclosure.