Short sales has become a very popular form of selling a home. Short sales are sales in which the lenders will give the buyers a discount on the total fees and payoff of the loan. If the seller or the buyer is having difficulty financially or otherwise, they lender/mortgage company will often discount the value of the loan so it will make it easier to sell the property. By doing this, it will often benefit the lender in the long run. Some reasons for a Short Sale is because the seller is having trouble keeping up with the payments on the loan, the loan is delinquent, there is a hardship involved, or the property is valued at less than what the loan is for.
The Short Sale can benefit the seller because it will prevent their credit being damaged or ruined. If payments are missed it can affect the credit score considerably. They can also continue to live in the home during the Short Sale transaction.
There are benefits to all involved in a Short Sale. The seller will be able to sell the home and save their credit rating. The Buyer will be able to get a home of their dreams at a discounted price. The Mortgage company will b able to receive their money quicker and possibly finance the home to the new buyer. This also means the real estate agent will receive their commissions quicker if the home sells quicker at the cheaper price. It is a win, win situation for all.