Defining a Quick Sale or a Short Sale in Real Estate
The quick sale must have the cooperation as well as the agreement of the mortgage lender to discount the loan. Therefore, everyone receives something in the process of a quick sale.
A quick sale, also known as a short sale, is a real estate transaction type where property is typically sold for a price that is lower than the actual mortgage owed or amount owed for the mortgage on the property.
With a quick mortgage lending institution approves the proposed owner of the property for sale can continue or conclude the sale of the property. In the past five years this has been a chosen method of sale for hundreds and thousands of properties. Many real estate experts are in agreement that it will continue to be used as a preferred method of selling properties with lenders and homeowners in the current housing market. This term has been previously used in the real estate market, but not to the extent that we are seeing in the existing market for sellers and buyers alike.
There are situations
and circumstances when this transaction method for buying and selling
works for all parties involved. For the current real estate market there
are quite a few properties where the market value of the property is
lower than the amount owed on the mortgage which is the ideal situation
for a fast sale.
The quick sale must have the cooperation as well as the agreement of the mortgage lender to discount the loan. In other words, the mortgage lender must agree to accept less than the mortgage amount for the home and accept the loss for the difference between the mortgage owed and what the buyer is paying for the property. Although the property owner will receive nothing from the sale of the home, he won't owe anything on the mortgage to the lender. Therefore, everyone receives something in the process of a quick sale.
The seller that has the mortgage has limited their financial exposure for the loan they owe and can no longer afford to pay. The lender is lessening their financial losses because they are bypassing a foreclosure and possibility that they may not get anything from the seller. The buyer of the property is getting a piece of real estate generally at a very favorable price. There isn't a win-win all around. Though, everyone does get something out of the quick sale of a property.With the quick sale the lender and seller do not make a profit. However, both are mitigating their losses. The real winner in a quick sale can sometimes be the buyer who is receiving a piece of property at a favorable price. The entire process relies on the lending institution approving the quick sale since they will be absorbing the loss of the difference between the mortgage owed and the actual price paid for the property. With the lender approval a sale can proceed and the process will continue the same as a regular sale of real estate property.
Source: Free Articles from ArticlesFactory.com
ABOUT THE AUTHOR
If you are looking for Uk best house comparing company you must check out this site Quick Sale you will get all the best comparison you need.