BuyingAHome-JenniferChristenot

owed on the mortgage, it’s called a “short sale”. In order for a
short sale to occur, the lender financing the mortgage has to
agree to the sale. Sometimes the lender will agree to the sale
and just take the difference as a loss because it’s easier than
unloading a foreclosed property. Other times the seller will
have to pay the lender the difference. Short sales are beneficial
to sellers because they can often sell a property that they can’t
afford, and because short sales can help protect their credit.
But, short sales also bring a number of benefits to buyers.
Short sales can help save the buyer money in a number of
ways. Firstly, because the home is being sold for less than the
amount already owed on the mortgage, buyers can often snag
a great price because the lender would rather sell it than pay
the costs associated with foreclosure. Also, properties that need
maintenance or repairs completed on them, and that are listed
as a short sale, often require that the responsibility of repairs be
on the buyer. Bringing these factors up during the negotiation
process can also help score you a better deal.
Properties that are listed as a short sale can also save the
buyer money if the lender wants to sell the home, and sell it
quickly in order to start making some money from it. Typically
when a homeowner has gotten into so much trouble with
their mortgage that they’re forced to list their property as a
short sale, they’re already two or three months behind on
their mortgages payments; which means the lender has been
receiving no money during that time. Rather than start the
11
FAQ’S ABOUT BUYING A HOME | JENNIFER CHRISTENOT