Have you ever wonder what a short sale is and why are people so excited about them? Well, I'm going to try to give you the answer.
What is a Short Sale: A short sale is a sale of real estate in which the selling price falls short of the balance owed on the property's mortgage. It usually occurs when a borrower cannot make the mortgage payment on their property, but the lender decides that selling the property at a moderate loss is better than pressing the current debtor. Both parties consent to the short sale process, because it allows them to avoid foreclosure, which saves the lender some hefty fees and is not so bad on the owners credit report.
Why are people so excited about them? Everyone seems to think that these short sales are great bargains and that you will save thousands of dollars when you buy them. If that were the case, don't you think anyone who wanted to make money would be buying them as fast as they came on the market? Yes, they would. Short sales are not always a money maker. Usually when you buy a short sale, it appraises for exactly the amount you are buying it for. If you were buying it for say $150K and it appraised for $250K then that would be a real bargain. But, that is very seldom the case on a short sale.
Want to see the latest short sale home in person? Just go to www.utahshortsaletour.com or call the Utah Short Sale Tour information line at 1-800-258-1861, extension 957, for a 24 hour recoreded message.
