Short Sales And Foreclosures Are Still The Order Of The Day

According to Real Estate Wiki a Short Sale is a legal, lender-approved solution assisting financially strapped homeowners to get out from under their mortgage commitment quickly. A Short Sale can be accomplished by negotiating with your bank or lending institution to accept a purchase price for your property to a third party buyer for less than what you currently owe on your mortgage balance.

The real property short sale is not a questionable practice in a softening market, in fact it may have become a necessity. The homeowner wins by getting out of a difficult financial situation through a clean transaction and a salvaged credit score. The property does not go into foreclosure, thus helping home owners minimize impact to their credit rating. The lender wins by avoiding costly foreclosure proceedings or re-taking ownership of the property until it sells; referred to as REO or Real Estate Owned.  The buyer wins by getting a nice property at a good market value.

If you are considering a Short Sale, your first call should be to your financial and/or legal adviser or real estate professional.

Visit the largest online free real estate encyclopedia Real Estate Wiki at www.realestatewiki.com for thousands of definitions, abbrviations and FAQ's.