Do You Know What is a Mortgage Short Sale
The short sale is a selling process of real property when the homeowner fall short of the balance owed on his mortgage loan and the lender decide to sale the property to recover the loss on mortgage in stead of filling foreclosure. Many homeowners like to sale their home quickly in order to avoid the foreclosure process on failure of payment of the loan. The short sale occurs with the both parties’ agreement which is that the borrower has not obliged to pay the remaining balance of the mortgage loan.
As a result of financial hardship of the homeowner the lender or the bank allows the homeowner to money off the balance owed on the loan but it is offered before issuance of the Notice of Default. The homeowner allows selling the mortgaged property for the price which is less then the outstanding balance of the loan. the lender wish to short sale the mortgage property incurring little loss because some heavy fees become a burden on lenders for processing to foreclosure activities instead of short sale and the borrower get a relief from the obligation to pay off the balance of the mortgage loan and also the borrower get benefit of untouched and undamaged credit history by the foreclosure effect. All lenders have a loss mitigation department in which the lenders check the potentiality of the short sale event and evaluate the apprise value of the mortgage property and then the lender decide to short sale.
This short sale is a faster and less expensive solution of defaulting mortgage loan and avoiding foreclosure. This short sale is also less expensive form the foreclosure process so more lender is willing to choose to short sale if the can determine good selling price from an appraisal.
