Buyer’s Benefits on a Short Sale

A short sale is often defined as a way of agreement that a house is sold lesser than the mortgage loan amount. Moreover, a short sale is often a workaround in avoiding a foreclosure from happening. In addition to this, there are more benefits a buyer can benefit from a short sale.

1. Lower Cost

A foreclosure is an unfortunate event for a homeowner. Moreover, it is not a great situation for the lender as well because he will definitely handle the costs and the costs are high. When it comes to costs related in administrative issues and the costs associated in the time the owner will let the property go, the costs involved in both events are catered by the lender of the property. When the owner is already out of the picture, there are still certain costs that needs to be handled like repairs and maintenance thus these costs are also handled by the lender of the property. However, there is actually a way that the lender of the property can get out of this situation. Through offering a lower price, the lender will be free of the responsibility to shoulder the repair costs as well as the costs for maintenance. Through this situation, buyers get the advantage of the situation. Short sale offered through their website offers a way for homeowners and lenders of the property to get out of the situation of foreclosure where you need to spend before you earn a benefit on the situation. Buyers who can willingly shoulder the repairs themselves can also benefit on the process because they can purchase through a much more affordable price. Thus, looking at it, short sale is a method that provides a win-win situation!

2. Win-Win Situation in Terms of Finances

Short sales need the bank’s involvement to push through with the process however it is a way that can also be beneficial and efficient with respect to the bank’s involvement. The process of short sale needs the owner’s involvement to undergo a number of payments before the bank agrees.

Bank employees are knowledgeable that the owner has an incapacity to pay his mortgage obligation thus as a compromise on the situation, banks opt for a short sale on the property to make sure the owner of the property can regain some of his assets on the property. When we weigh this case, it might seem that the bank is at a disadvantage however there are some advantages for the lender’s point of view even in this type of situation. In the process of proceeding with foreclosure, the bank actually losses more that’s why the more likely situation is to have the house or property on short sale. Banks often offer an interest that’s lower to make sure it is a much friendlier and more advantageous situation to the buyer of the property as well.

In a foreclosure situation, don’t lose all hope. You can either have a chance to stick with your property through a workaround provided by your bank however if the situation is tight, as the owner of the property, you can still have an advantage. Moreover, buyers also benefit through a lower cost of purchase as long as repairs and maintenance can be shouldered. Whatever may the way out of the situation be, it is a win for all the parties involved!

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