What is a short sale? Some of you know that I am learning as I go, as I work with Arizona and California hard money lender, Source Capital. I feel lucky to know Source Capital partners, Sacha Ferrandi and Pat Hook of San Diego County. They are real estate loan experts and I definitely am not! They have become a valuable resource to me and my education process. I mention this, because they are available as a resource for you, as well.
From the information I have gathered, I have now learned, a short sale is an alternative to a foreclosure. It does, however still impact someone’s credit report negatively. I can only imagine it must also be as stressful and emotional, as a foreclosure or similar situation is.
Basically when the sale of a piece of real estate falls short of debts secured by liens against the property, it is referred to as a “short sale.” It is an agreement whereas the lien holders agree to remove any liens to allow the sale to happen. When they release the liens, they agree to accept a smaller payoff than has actually accrued. This does not necessarily mean the borrower does not have to repay the unpaid balance, known as a “deficiency.” This may be the case, but only if it is mutually agreed upon between both parties.
I love the video at the link below! It is a simple and easy to understand explanation of a short sale and the associated process.
Just as more people than ever are being forced to go through the foreclosure process, the short sale option is being chosen by more people also. Regardless of whether you have experienced one of these situations, bankruptcy or some other issue, resulting in poor credit, don’t give up your dream of becoming a property owner again.
Source Capital Funding, Inc. is a direct, private hard money lender that provides hard money loans throughout California and Arizona. We lend in all major cities in California including, Los Angeles, San Diego, San Jose, San Francisco, Fresno, Sacramento, Anaheim, Bakersfield, Riverside and in Arizona cities including, Phoenix, Tucson, Mesa, Chandler, Glendale and Scottsdale. If you need a private hard money lender to fund your hard money loan, Source Capital Funding can be reached at 858.705.6144. -Sindi Somers