Some please explain to me in simple 4th grade English what a shortsale is…it’s pros and cons. Same thing for foreclosures.
Re: shortsales, foreclosures, etc.
A short sale is a sale of a home in which the sale proceeds fall short of the balance owed on the mortgage.
Foreclosure is when the bank takes over possession of a mortgaged property as a result of the borrower’s failure to make mortgage payments. Foreclosure is good if you are a buyer, since it allows you to buy property at lower than market value.
From wikipedia:
Shortsale often occurs when a borrower cannot pay the mortgage loan on their property, but 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. This agreement, however, does not necessarily release the borrower from the obligation to pay the remaining balance of the loan, known as the deficiency
Re: shortsales, foreclosures, etc.
Thank you jee!