Real Estate Short Sale
Tuesday, October 21st, 2008“Real estate short selling” is a popular phrase among many these days. Real estate short sales serve as an alternative to foreclosures in an increasingly declining real estate market. Real estate prices are lower now than they have been in a long time and the amount of time it takes to sell a piece of real estate is rising.
It is completely valid to say that some regions - such as Detroit, for example - are experiencing a market meltdown. These declining real estate markets are the main reason for the rise in short sale real estate.
A bank allows a real estate short sale to occur when the bank consents to letting their property be sold for an amount smaller than the amount owed on it. In order for this to occur, two conditions must be met.
Firstly: Market values are such that the property’s sale price cannot cover the outstanding mortgage balance(s). An inability to make additional payments on the property is the second requirement.
