The homeowner benefits from a short sale because the property is not foreclosed on, but rather is classified as a pre-foreclosure in redemption. What this means is that their credit score will take less of a hit. After a foreclosure, their credit score takes a hit of up to 350 points and will not be considered for another loan for 60 months. In a pre-foreclosure in redemption situation their credit score will take a hit of only about 200 points and are eligible for another loan after 18 months.

This is a question we get a lot and the answer is simple. With the recent real estate meltdown, banks are foreclosing on properties in record numbers. The banks are not in the real estate business, so they do not like to own all of these properties. There are so many foreclosed properties for sale by banks that the banks begin to lose money on properties the longer they hold them. It is in the best interest of the bank to sell us the property at a discount now, rather then keep the property on their books and sell it for a discount later.

A short sale is when a bank or mortgage lender agrees to discount a loan balance due to an economic hardship on the part of the mortgagor. The lender sells the mortgaged property for less than the outstanding balance of the loan to an investor, and turns over the proceeds of the sale to fulfill the satisfaction of the debt. In such instances, the lender would have the right to approve or disapprove of a proposed sale.

 

Frequently Asked Questions

There are two ways that we are able to help homeowners in their current situation. The best solution for you will depend on your individual situation and the amount of equity in your property. If you have enough equity in your property we can buy your equity at a discount and payoff your loan. The majority of people in pre-foreclosure have little to no to equity in their properties, so the only option for them would be to conduct a short sale.

How can you help me Avoid Foreclosure?

What is a Short Sale?

Why would a bank take less than they are owed?

How does the homeowner benefit from a Short Sale?

Your Local Foreclosure Specialist

Mecklenburg County

TEXO PROPERTIES LLC