A home short sale is the explicit process of selling a home where the profits from that home will not exceed the amount owed on that home. It basically means that whoever owns the property is entirely unable to pay off that property, even after the sale has concluded. A home short sale occurs when the bank or lending institution accepts the lien and accepts the new amount for the terms of what is owed to a property.
Today, a home short sale is becoming increasingly common among U.S. homeowners, since many who purchased properties years ago were probably not able to even afford them at that time. However, they were given loans when they probably should not have been given that amount, and they made purchases that they could not effectively back up. Rather than go through foreclosure, a home short sale is conducted; however, there is such a thing as a short sale foreclosure, which is somewhat related to a home short sale but which is not exactly the same.
Because there are differences between a home short sale and one involving a foreclosure, most people seek short sale help from an attorney or a real estate professional with experience handling these sorts of transactions. Fortunately for these homeowners and unfortunately for the state of the country, more agents are getting experience with these sales because their clients lack the funds to pay off their properties, cannot sell their homes at the prices at which they purchased them because the market is still significantly lower than it was before the market crashed, and cannot rightfully stay in their homes either. This conundrum is leading to the new normal for many, or the home short sale.
With any home short sale, homeowners still must undergo credit checks and get professional assistance, but in many instances this beats them having to foreclose on their properties. Most of this advantage lies in avoiding the fees and other costs associated with foreclosures. And since in some states the deficiencies, which are the difference between the original amount owed to the lending institution and the amount that the institution has accepted as a new payment amount, are accepted. This means homeowners may not be responsible for the deficiency numbers, so they can sell their homes via a sale of this kind and then move on to a less expensive or more affordable property.