Pre-foreclosure Short Sale – An Emerging Trend

Saturday, October 31st, 2009 at 2:25 am

Home foreclosure is the greatest fear of all home owners, and people suddenly placed in the mud pool of financial crisis are looking for solutions through which they can avoid it. One of these solutions, and perhaps the best among them, is doing a pre foreclosure short sale.

Pre foreclosure short sale, drawing its meaning from the term itself, is a “short sale” being done before the real estate lender “foreclose” or repossess the housing property. The home owner sells his or her housing property in order to pay the housing loan to the lender.

The main reason why pre foreclosure short sale is a trend in the realm of real estate industry is that all parties are in the winning side. The home owner who will sell his or her property will be able to avoid the socially embarrassing case of repossession, and the consequences that it will bring especially in the home owner’s future financial activities. The mortgage lender, even though he or she will not receive the loan payment in full, will at least receive a part of the money that the home owner owes.

The lender too will be spared of the time-and-money-consumption that foreclosure legal procedures always entail. Lastly, the new buyer of the short sale property will be offered a very low price, enabling him or her to maximize money’s worth. The advantages of a pre foreclosure short sale can be achieved only if all the parties in the agreement are truthful and honest to one another.