Short sales can be a good choice for sellers, buyers and banks in Atlanta compared with foreclosure. How can this be? Read on to learn more about short sales, and how all parties can benefit when a home is sold for less than what is owed on a mortgage.
What is a short sale?
A short sale is a way to sell a home that is underwater. In a short sale, the bank agrees to accept a payoff on the mortgage that is less than what the homeowner owes. The bank then forgives whatever is left on the mortgage.
If you want to buy a home through a short sale, you will want to:
- See the property in person
- Get a property inspection
- Get a title inspection
- Ensure you have financing
- Complete the bank’s short sale application
- Negotiate terms and a price acceptable to all
You can move forward with closing once these steps are completed. You do not want to drag your feet on any of these steps because the process leading up to closing in a short sale can move fast.
However, once an offer is accepted, the closing process in a short sale can take longer than a traditional sale.
Advantages to a short sale
A short sale allows homeowners who are underwater settle a mortgage they simply cannot afford, even if they cannot sell their home for the full amount of what they owe.
Banks permits a short sale to occur because the outcome for them is better for than dealing with the hassle and cost of a foreclosure.
Buyers in a short sale will get the property at a lower price than a traditional sale.
Short sales can be better than a foreclosure. Sellers can take a big hit to their credit in a short sale, but it is not as bad as the hit their credit would take if they went through a foreclosure.
Buyers must complete many steps before they can close on a short sale. But they still get to view and inspect the home, rather than taking a chance on the unknown, as they would in a foreclosure.
Sellers, buyers and banks all benefit from the real estate transaction known as a short sale.