Many people do not know what a short sale is. However, more people have been seeking short sale services because of the recession. A short sale is a process where one sells their house for a value that is lower than what he or she owes on the mortgage. The disparity between what is owed on the mortgage and the sale price acquired for the short sale are forgiven b the bank. This is a way for people who cannot make mortgage payments to avoid foreclosure. A mortgage company will only consent to a short sale if they will lose less money than they would with a foreclosure. The mortgage company decides that it is profitable if they stand to make more money selling the home at a low price than foreclosing on it and making much less money from the transaction. Real estate short sales benefit both the mortgage company and the homeowner to make maximum profit. A big reason why many people opt for a real estate short sale is because it lessens the negative effect that a foreclosure has on your credit score. Having a bad credit score can inhibit someone from doing many things such as buying a car or renting an apartment.
During short sales Los Angeles residents must go through a series of steps that can take anywhere from a couple weeks to a few months. The first step is to contact the bank and ask if they would consider the short sale. In addition to talking to the bank, one should find a real estate agent with familiarity dealing with short sales. Then they must put the house up for sale in order to find a reliable buyer. Finally, the bank can approve the deal and the short sale is complete. In general, the step which takes the longest is actually selling the house. It often takes awhile to find a buyer, even at a low price.
Some people decide to short sell their house because they simply no longer think it’s a good investment and want to get as much money out of it as possible. In addition, if you are relocating to a new area and paying for the current property is not feasible, the mortgage company can agree to a short sale so everyone gets at least some money. If you are paying more than the property is worth, then it does not make financial sense to keep the house. Also, if your interest rate, monthly payments, or mortgage balance has been increase it is often not a good idea to keep the property.
If interested in short sales Los Angeles residents can find many companies available to provide short sale services!
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