If you are wondering who benefits from a short sale read this.
Are you wondering who benefits from a short sale? The answer is everyone. Read the article below to find out why a short sale is beneficial to all those who are involved.
Does Anyone Really Benefit From a Short Sale? Short sales are in fact beneficial for all the parties involved, but it just depends on how those parties are looking at it. It is beneficial for the homeowner who needs to get their short sale listed. The homeowner has an opportunity to get out of this without having a foreclosure on their credit. The buyer is getting a home for a reduction in the price, and the bank is able to move a property without it going into foreclosure.
Lenders are not required to negotiate the balance on the loan, but they seem to be more willing to work things out these days. With the pressure of what is going on in the market, it is no wonder that the short sale has become a better option. This doesn’t mean that it works the same in all markets, but the lack of professionals who know how to deal with this type of sale is in demand.
So, the bigger question is who actually makes money on a short sale? Short sales are profitable for all parties except the seller. The buyer will make money in a less traditional way. They will be able to save money by getting a little bit more home for less money, and they will come out ahead in terms of the equity they will acquire over time. Granted, this is all determined on what the market is doing at the time they decide they wish to sell.
The bank will make money instead of taking a loss because they will indeed sell the home rather than having to foreclose, but the seller just gets rid of the house. The bonus for the seller is that they will not have a foreclosure on their credit and will be able to walk away with some dignity. The seller won’t be proud of the situation, but they will be able to get out from something they thought was impossible, and they can start repairing their credit by paying down other obligations. This will help them build up some cash flow before buying another home.
The title companies also make money on a new short sale, because they are writing a new title for the buyer and recording it for the lender. Escrow companies will also make money because is most cases they are a third party to the transaction. They get paid by the lender, or the fee may be divided between the buyer and the lender.
When selling a short sale, it is wise to get legal advice and with any new contracts these attorneys will get their share of revenue too. There are attorneys that negotiate short sales, and so they charge a fee for the service they provide. There are many aspects of how revenue is generated from a short sale, but there are many people that benefit from it.
When looking into a short sale, it is in your best interest to inquire from the experts. You need a professional that can guide you through the process and explain things to you in a way that you understand it as it pertains to you. For more information on short sales, and what you need to know before you get started, visit http://www.inlandempireshortsaleresource.com for more details.
Article by Mayer Dallal
As a real estate executive and philanthropist, Mayer Dallal provides valuable counsel to individuals and families dealing with economic uncertainty. The advice Mayer Dallal gives his clients is to have options, to navigate this difficult economy with knowledge and confidence.