WHAT IS SHORT SALE IN REAL ESTATE???

A short sale in real estate occurs when the total outstanding obligations (loans, mortgages) against a property are greater than what the property can be sold for. Homeowners who wish to sell their home to get out from under the mortgage or for a host of other reason may choose to try and do a short sale in real estate in order to resolve the debt.

STEPS TO DETERMINING A SHORT SALE IN REAL ESTATE

1. Verify the value of your short sale real estate foreclosure property. If you are attempting to do a short sale foreclosure sale with the help of a real estate broker, your broker will provide you with an estimate of market value. If you are short selling the real estate yourself, do your own market analysis of the area and your real estate. Consult an appraiser, comp your home for free on www.propertyhookup.com in the top left corner, or ask your local title company for comps. You need to determine the going price for your home in the current market.
2. Add up all the costs of selling the real estate property through a short sale. If you are going to do a short sale foreclosure using the services of a real estate broker, the broker will provide an estimate of closing costs. If you are short selling the property on your own (for sale by owner), call a local title company or real estate attorney and ask, as a seller, what the closing costs will be.
3. Determine the amount owed against the real estate. This will be the total of all loans against the property. 
4. What is short sale in real estate? Do the calculations. Determine if your sale will be short by subtracting the total amount owing against the property from the estimated proceeds of the sale. On a short sale in real estate, this will be a negative number. If you number is negative, that means that there will not be enough money from the proceeds of your sale to satisfy all of the debts owning against your home.

WHAT TO DO! MY HOME IS A SHORT SALE

1. Contact the lender or lenders if you have more than one. Enlist the help of the title or escrow agent to make contact with them and get them to listen. Sometimes a third party is best, as they can make the most unbiased, rational sense of the issues. Talk to someone in the customer service department and tell them your unique distressed situation. They may direct you to a specific department. Talk to a supervisor or manager if possible; this person will have more authority.
2. Some lenders are willing to work with you by reducing the amount owed on the real estate or making other arrangements. Others will look to the agents involved (if any) or ANYONE else who's making money off of the sale of the home to see if those people are willing to make concessions and take discounts to make the transaction happen. Still other lenders will tell you that the debt is your responsibility, one way or the other. They will threaten to come after you for the short sale foreclosure amount, and attach other personal assets of your in order to recoup the total amount that they originally lent to you. Part of a successful short sale transaction in real estate includes guarantees from the bank that the short amount they have agreed to take will FULLY satisfy your obligation to them. In this case, the threat that the bank will come after you for the remaining "short" amount is wiped away, because they have accepted this short sale amount as part of the resolution.
3. Sell (close) the short sale real estate foreclosure property. In today's rough market, lenders are forced to negotiate heavier than before, because they are in dire need of cash and cannot hold an increasing amount of vacant homes. They would often rather resolve the sale and take a short amount, than take the real estate in foreclosure and try to sell it on their own.

Tips & Warnings - What is short sale in real estate?

* Closing costs will include title and escrow fees (if the seller is responsible for any portion of them, which will depend on your county), attorney fees, a portion of unpaid property taxes, re-conveyance fees, notary fees, delivery fees, documentary fees and/or real estate transfer fees.

* If you are going to do a short sale in real estate without the assistance of a real estate broker, you will save the amount of the commission and have more to apply toward paying off the loan.

* Remember that the amount on your monthly loan statement does not include interest. Interest is accrued until the date a loan is paid off, so you may have as much as 30 days of interest on top of the balance owing, and you'll need to include this interest in the total payoff amount.

* If a property is sold under a short sale, the lender may require the buyer to make up the difference, either through a personal obligation or a collection.

* The IRS often gets involved with short sale because they are seen as a relief of debt and may be treated as income. Check with your accountant.

I hope that I have answered your question what is a short sale in real estate? If you enjoyed it, you can read other interesting and helpful real estate and foreclosure articles here. Thanks.

Search our national short sale real estate sale listings for free to find discounted California short sale homes, Dallas real estate sale strategies, and foreclosure estate homes in Los Angeles for pennies on the dollar. Buy below market value short sale homes in Texas and search Miami real estate sale listings that are 20% to 50% off. Buy Las Vegas short sale homes and Miami foreclosure estate houses for sale for as low as $10,000 and Dallas foreclosure real estate selling for pennies below cost on www.PropertyHookup.com.