With the past trouble of the economy, more and more Greenville residents are finding themselves in a financial bind. As more people are defaulting on their mortgage payments, we are seeing increasing numbers facing foreclosure. Although the short sale process in Greenville has been around for years, we are starting to have more homeowners apply to their lender for short sale approval on their homes. Well, what is a short sale anyway?

Those Greenville residents who know what a short sale is, or understand the process, know that the average time required to fulfill this process is anything but short. A Greenville short sale often comes before a foreclosure, and is defined as a sale of property that falls short of the balanced owed to the lender of the loan that secured the property. One of the main reasons a Greenville short sale process is so lengthy is due to the process of applying through the lender for the approval of a short sale. Many times, especially with the recent number of foreclosed homes and short sale requests, the Greenville lenders are overloaded.

Additionally, there are a number of certain criteria that the homeowner must meet before a Greenville short sale is approved by the lender. Many times a lender in Greenville will require proof that the seller has fallen on hard financial times by requiring a letter outlining why the seller cannot keep up with the mortgage payments. Greenville lenders aren’t excited about allowing foreclosures, but quite often they don’t have many choices.

When the short sale is approved and the Greenville home is sold, the bank takes the proceeds from the sale, and the seller does not. Although the home owner does not make any money through the short sale of the home, it is beneficial to the seller of the home to do a short sale if they are cash-strapped and facing a possible foreclosure. Also, a short sale typically will not affect one’s credit score as a foreclosure will. When the Greenville short sale process is closed, the credit report will show the transaction as ‘Paid-Settled’.

Although a short sale has some benefits to the seller, either way, it is a very difficult process. Whether buying or selling a short sale property, a Greenville real estate professional should always be consulted.

Posted on Friday, February 6th, 2009 at 6:19 pm and is filed under Short Sale. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.