2007-08-09 05:22:29 · 4 answers · asked by Sherri A 2 in Business & Finance ➔ Renting & Real Estate
When lenders agree to do a short sale in real estate, it means the lender is accepting less than the total amount due. Not all lenders will accept short sales or discounted payoffs, especially if it would make more financial sense to foreclose. If you are considering buying a short sale, there could be drawbacks. For your protection, I suggest that borrowers
1. obtain legal advice from a competent real estate lawyer
2. call an accountant to discuss tax ramifications
2007-08-09 05:26:39 · answer #1 · answered by magnolia 5 · 0⤊ 0⤋
Simple put a short sale is an agreement between the lender and borrower that the lender will take less than the full value of a property for a sale in order to keep the property from becoming a Real Estate On-hand (REO).
Normally they would try to accept an offer that at least cover the mortgage, but this is not true in all cases. Sometimes they will take less than the amount borrowed on the property.
2007-08-09 05:29:49 · answer #2 · answered by loanmasterone 7 · 0⤊ 0⤋
A short sale is when the lender agrees to accept less than what they are owed to release the lien. They may still try to collect the difference from the borrower even after the homs sells, however.
2007-08-09 05:30:08 · answer #3 · answered by Keep On Trucking 4 · 0⤊ 0⤋
A short sale is when you sell a property for less than you owe on it, and the lender that you owe does not ask you for the shortage. It's usually done when someone has to sell their property and they aren't getting offers for what they owe on it, and the only other options would be foreclosure or a deed-in-lieu-of foreclosure.
2007-08-09 05:27:59 · answer #4 · answered by Anonymous · 0⤊ 0⤋