What is a Short Sale?
Millions of homeowners who are delinquent on their mortgage payments face certain foreclosure if they’re unable to work out an acceptable solution with their lender. Knowing the answer to the all-important question of “What is a short sale?” can help a savvy real estate investor to capitalize on the opportunity to snap up bargain-priced properties at a substantial discount.

The answer to the question of “What is a short sale?” is simple enough: It’s a negotiated discount where a lender agrees to accept less than is owed on a mortgage as payment in full for a property. For instance, if a homeowner owes $194,000 to the lender, the lender might be willing to accept as little as $100,000. This will allow the homeowner to avoid foreclosure, more extensive credit damage, and will also let them begin the process of rebuilding their financial life, while giving a real estate investor the chance to purchase a property at a massive discount.
While most homeowners can grasp the short sale concept, the biggest question they may have is: What is a short sale going to do to solve their short-term financial problem – and how will it keep their credit from being even more severely damaged than it already is? If you can answer this question to their satisfaction, a distressed homeowner will likely take the lifeline that you’re offering them.
By sitting down with the distressed homeowner and clearly explaining just what is a short sale to their financial future, you can provide a solution to their financial trouble and can help them to get on with their lives, you can often convince reluctant homeowners to do business with you, especially when they realize that they have relatively few good options when faced with impending foreclosure.
















