Can a seller make money on a short sale?

Get money for a HAFA short film. A short sale means that they won't make any profit from the sale of the house; the bank or mortgage lender keeps all the proceeds from the sale.

Can a seller make money on a short sale?

Get money for a HAFA short film. A short sale means that they won't make any profit from the sale of the house; the bank or mortgage lender keeps all the proceeds from the sale. For buyers, the paperwork process is significantly longer in a short sale (usually up to 120 days) than in a traditional home sale (usually up to 45 days) and that can be a decisive factor for homebuyers. In real estate, a short sale can occur when a homeowner sells a home at a price lower than the outstanding mortgage amount.

For a short sale to take place, both the lender and the homeowner must be willing to sell the home to the new buyer at a loss. Mostly, the big benefit is the increased chances of getting the house at a reduced price, knowing that the house is in short sale mode and that homeowners, and probably even the bank or lender in many cases, will want to sell the house and get out of the mortgage loan. Some short sales are ridiculously low priced, but realistically, the house will likely sell closer to the market price. Selling a home through the short sale process is never ideal; the only reason a homeowner would want to do so is to avoid foreclosure.

A short real estate sale is when a homeowner needs to sell their home, but the seller is “short” of the capital needed to pay the mortgage and all charges related to the sale. For a short sale to take place, both the lender and the landlord must be willing to sell the home at a loss. A short sale of real estate occurs when a homeowner who owes more on their mortgage than their home is currently worth agrees to sell it at a price lower than the fair market price. The homeowner won't make a profit and the lender will actually lose money by selling the house for less than the amount owed.

The homeowner won't make a profit (and won't pay any fees) and the lender will lose money by selling the house for less than the amount owed.

George Deschene
George Deschene

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