It can offer the seller peace of mind.
Real estate transactions generate a whirlwind of activity between the buyer and the seller, and they're often stressful by nature. But they don't compare to the pressure that a homeowner is under during a foreclosure. The major credit hit, the drawn-out legal process and the overall stigma attached to foreclosure can be quite unnerving [source: Foreclosure Questions].
Short sales are not exactly risk-free when it comes to the seller's credit, and they won't completely diminish the financial implications when homeowners are unable to pay for a home that they purchased. But a short sale will open the door to solutions for homeowners that can allow them to avoid legal action and the lengthy, laborious foreclosure process.
Short sales can leave homeowners in a much more positive position, lessen their financial burden and salvage their credit to a degree. A short sale can provide "light at the end of the tunnel" to homeowners and offer them a platform from which to start rebuilding financially [source: Foreclosure Questions].
For more great information on short sale and foreclosure, check out the links below.
- All About Real Estate Short Sales. "Benefits of Buying a Short Sale." (March 23, 2011)http://www.realestateshortsale.net/buying-short-sale.html
- Christie, Les. "You lost your house -- but you still have to pay." CNNMoney. Feb. 3, 2010. (March 24, 2011)http://money.cnn.com/2010/02/03/real_estate/foreclosure_deficiency_judgement/
- Dempsey, Bobbi. "10 steps to 'short sale' buying." Bankrate.com. 2010. (March 24, 2011)http://www.bankrate.com/finance/money-guides/10-crucial-steps-to-short-sale-buying-1.aspx
- Experian. "Impact of mortgage 'short sale' on your credit report." May 14, 2008. (March 23, 2011)http://www.experian.com/ask-experian/20080514-impact-of-mortgage-short-sale-on-your-credit-report.html
- Foreclosure.com. "Real Estate Short Sales." (March 23, 2011)http://www.foreclosure.com/shortsales.html
- ForeclosureFish.com. "Who Can Sue You for a Deficiency Judgment ... And Will They?" Feb. 27, 2008. (March 25, 2011)http://www.foreclosurefish.com/blog/index.php?id=412
- Foreclosure Questions. "How does the Foreclosure Process work." Feb. 14, 2011. (March 24, 2011)http://www.foreclosurequestionsguru.com/
- Foust, Dean. "The new exit strategy: A short sale." Bloomberg Businessweek. March 5, 2007. (March 24, 2011)http://www.businessweek.com/the_thread/hotproperty/archives/2007/03/the_new_exit_strategy_a_short_sale.html
- Freddie Mac. "Avoiding Mortgage Fraud." (March 24, 2011)http://www.freddiemac.com/avoidfraud/
- National Association of Realtors. "Field Guide to Short Sales." March 2010. (March 25, 2011)http://www.realtor.org/library/library/fg335
- Hartley, Daniel. "The Impact of Foreclosures on the Housing Market." Federal Reserve Bank of Cleveland. Oct. 27, 2010. (March 25, 2011)http://www.clevelandfed.org/research/commentary/2010/2010-15.cfm
- Rapoport, Gary. "Who Benefits From A Short Sale Real Estate Transaction?" (March 23, 2011) http://www.garyrapoport.net/who_benefits_from_a_short_sale_real_estate_transaction.htm
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