Get a Great Deal on Short Sale Properties

Welcome to today’s real estate market where short sales and distressed sales account for more than 40% of homes sales nationwide and over 50% of the sales in areas like Southern California and Florida, where home prices have plunged significantly in the last two years. A short sale in real estate is a transaction in which the seller’s mortgage lender agrees to accept a payoff of less than the balance due on the loan. Short sale situations usually result when a borrower cannot afford to pay off his mortgage loan on a property and the lender agrees to sell the property at a loss.

The short sale has advantages for both parties and as it allows borrowers to avoid foreclosure, it also helps the lender dodge the costs associated with the foreclosure. The borrower also avoids earning a negative credit report at the same time. The key to making money with distressed properties and short sales is often having a professional consultant with good banking relationships on your side. Working closely with the lender can really make a huge difference in whether or not a sale gets approved.