How to Determine if a Real Estate Short Sale Can Help You

Whether you are a homeowner, Realtor, consultant, real estate investor, or real estate professional, real estate short sales can help you.

Difficulty: Easy

Instructions

1. Step 1 is to define and understand what a real estate short sale is.
   
   A real estate short sale occurs when a property owner sells their property for less than the mortgage amount owed to their lender(s). On the surface, this may seem like only the borrower benefits from such a transaction. However, that couldn’t be further from the truth. Note: See our “Are You a Short Sale Candidate” to find out if you or someone you know are short sale candidates.

2. Step 2 is to determine which category your personal situation fits into and to determine if a real estate short sale is right for you.
   
   For discussion purposes we are going to assume a homeowner is a short sale candidate.
   
   For the homeowner, a short sale makes it possible to sell their home for less than the total amount owed. The sale of the property releases the homeowner from their debts and obligations without having to file bankruptcy or endure foreclosure. The homeowner is able to save their credit, regain their dignity and their peace of mind. Lastly, the homeowner will be closer to rediscovering the American dream of homeownership because they are able to amicably resolve their lender(s)' concerns.
   
   For the lender(s), a short sale can be less costly than foreclosure and can provide an acceptable hedge against future price declines within the market. Also, for lenders that have become insolvent and need to liquidate assets, a short sale is a way to quickly raise capital when compared to the foreclosure option – a process that could take a year or more to accomplish. Lastly, for lender(s), a short sale means a guaranteed loss now as opposed to an uncertain loss in the future. This may be in many instances a much larger loss.
   
   For the investor buyer, a short sale offers them the opportunity to “Buy a property for as much as 40% or more below market value.” This discount means that they are able to make substantial profits.
   
   For the home buyer, a short sale offers them the opportunity to buy a more affordable home. For some, this is the only way to experience the American dream and obtain homeownership, as the lower price relates to a lower and more affordable monthly mortgage payment.
   
   For the Realtor or consultant, a short sale provides the opportunity to earn a fee or commission for helping a struggling homeowner. In many down markets short sales are the only viable option for continued real estate sales. During difficult economic times and recessions, one or two extra sales per month may be the difference between earning a living or looking for another job. Those extra sales each month can come from negotiating a short sale.

3. In Step 3 you'll want to take action. If you have determined that you can benefit from negotiating a real estate short sale on your behalf or the behalf of a client, we encourage you to continue to learn more information about real estate short sales on this site or on our website.
   
   At our site we teach everyday homeowners, Realtors, and Investors how to successfully negotiate real estate short sales. Using our step-by-step proven system, we've taken the guessing work out of successfully negotiating short sales. We offer a myriad of features and benefits, and at a price you can afford. Please visit our site for additional information.