A short sale is a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property. In addition, the property owner cannot afford or chooses not to repay the liens full amounts.
Therefore, the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt. Any unpaid balance owed to the creditors is known as a deficiency.
With foreclosures on the rise in the US, banks are looking for any way they can to minimize their foreclosure losses. Basically, it is much more cost effective for a bank to agree to a short sale rather foreclose on a home.
Banks aren't in the business of owning real estate and collecting monthly mortgage payments, so a bank will take a minor loss in a short sale to start that payment cycle again.
In addition, if the home is in foreclosure, a bank must pay for upkeep, insurance, and other costs. Plus, through the foreclosure process, the bank would incur legal and court fees.
Suess Real Estate Experts, led by Joshua Suess and Annie Mai Thai, specializes in distressed properties. A Santa Clarita homeowner can contact Suess Short Sale Experts to decide if a short sale is right for them or use the online calculator to determine their next possible plan of action. Suess Real Estate Experts will work hard to waive deficiencies owed on your home, and doing it before the end of 2012 may prevent you in owing taxes on all waived debt.
Call today to speak with one of our top Santa Clarita Short Sale Agents.