Issaquah Highlands Undressed

What Is A Short Sale?

Posted by Larry Cragun

Part 2 of a series on short sales:

A substantial number of homes in Issaquah are classified as Short Sales. Agents must now identify in their MLS listing information if the sellers lender must approve of the purchase. This is just one of a few steps being taken to help make this situation easier for buyers and buyers agents to deal with.

A short sale occurs when a mortgage lender or lenders agree to accept less than the total amount of money they are owed on a piece of real estate. They would do this to facilitate the sale of that property, in lieu of it going to foreclosure and the bank owning it in the REO (Real Estate Owned department).

This is generally allowed when the borrower/owner has fallen behind on their mortgage payments enough to forecast a foreclosure is imminent.

A short sale allows the property to be sold and the lender to recoup some of its losses. It also allows the home owner to sell the property and avoid potentially severe and negative impacts on their credit for many years to come.

To review part 1 on Issaquah Undressed click here

You will find part 3 on Real Estate Undressed, click here.

This entry was posted on Friday, August 21st, 2009 at 7:50 am and is filed under Real Estate Data, Real Estate Tips, Short Sales. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.