Short Sale Properties- There is typically nothing "Short" about a Short Sale home transaction

A "short sale" by definition is where the payoff amount agreed to by the lender in the transaction is less than the mortgage balance owed on the property. Short sales can be beneficial to the seller but extremely wearisome to a buyer that is looking to purchase a home right away. The settlement is usually negotiated by a Realtor or Attorney who handles most of the paperwork for the seller in an effort to come to an agreement that is beneficial for all parties. California City Real Estate has several experienced short sale negotiators available to speak with the seller before we list the home for sale to make sure the sale will qualify as a short sale with the banks. The seller will usually receive a form 1099 after the short sale for the amount of debt forgiven. The banks are agreeing not to pursue you for the money they lost by filing a deficiency judgment in the future. These types of transactions have become more common in this economy as the number of foreclosures rise and homeowners in trouble are left looking for a way out that doesn't involve the devastating impact on their credit that foreclosures and bankruptcy can cause. In most cases, a realtor experienced in these types of transactions can help both the worried homeowner and the lenders who may be flooded with hundreds of foreclosures come to a mutually agreeable solution. While they are time consuming to prepare as a sale and they take even longer for a buyer, there are benefits to the involved parties that compensate for any negative aspects.