How does short sale work for seller?

How does short sale work for seller?

For a regular home sale, the seller would use the proceeds to pay off the original loan. In a short sale, the home sells for less than the seller owes, so the lender won’t get all their money back. As a result, the original lender must agree to the sale. The seller must prove they have no other option.

How does a short sale work in NC?

Basically, a “short sale” is a sale of mortgaged real property where the proceeds from the sale are insufficient to pay in full the seller’s outstanding mortgage and any other liens against the property and the seller lacks sufficient other assets to pay the remaining amounts due on the secured debts after application …

Does seller get money from short sale?

Negatives of Short Sales to a Home Seller A short sale means they won’t earn any profit from the sale of the house – the bank or mortgage lender gets all the sales proceeds.

Who has the final say when we have a short sale?

The bank or lender has final say into whether a short sale can occur, as the proceeds of the sale become what the institution will accept to satisfy the seller’s original mortgage loan of the seller.

Who do Licensees typically represent in a short sale transaction?

On a bank-owned home the Seller is of course the bank and therefore the Listing Agent represents the bank. On a short sale however, the Listing Agent represents the Seller, which in this case is the current homeowner.

What is one of the risks of working with a company that specializes in handling the details of a short sale?

Opportunity Cost. Short sales present another risk because the lengthy short sale process could cause you to miss out on other potential purchases. With all your time and resources tied up in short sale negotiations for months, you could miss out on an even better investment opportunity.

Can you get a short sale for less than asking price?

If the list price is too low, the bank will reject the short sale. Moreover, a low list price could be a strategy used by the listing agent and seller to entice multiple offers on the short sale. In short, the list price of a short sale could mean nothing at all.