Frequently asked questions about short sales include whether to choose a short sale over foreclosure, who benefits from a short sale and how, and whether an attorney is needed for a short sale. Buyers may also want answers to questions about how to find short sale properties and how to make successful offers to purchase them.
When banks allow homeowners to sell a home for less than they owe on it, the transaction is called a short sale. When faced with potential foreclosure, homeowners should seek financial and or legal counsel before deciding whether to opt instead for a short sale. Depending on the final selling price, short sales can be beneficial to all parties in the transaction. The mortgage lender may save some of the costs involved in foreclosure, the home seller may find it easier to transition to affordable housing by avoiding foreclosure, and the buyer may get an excellent value in his home purchase. While legal advice is highly recommended, a homeowner doing a short sale may not need an attorney to represent or negotiate for him.
Real estate professionals with some experience in short sales may be able to assist buyers in finding short sale listings. Buyers who are familiar with the Multiple Listing Service database may also be able to find listings themselves. Making a successful offer involves many of the same processes and assumptions involved in any successful real estate offer.