The real estate industry has got many terms and conditions probably due to its diversity. And on some occasions, investors have come across processes such as a short sale. Kevin Bratch offers that although it is uncommon, this complicated process sometimes happens.
Therefore, in Kevin Bratch’s own words, a short sale normally happens when during the sale of property whereby, a particular lender has agreed to accept an amount of money, which is lower than what is remaining in terms of the mortgage loan. However, for a short sale in property to pull through, then certain conditions are looked and are as follows.
In most cases, and according to Kevin Bratch, when a short sale happens both the lender and the property owner will try to initiate this process to avoid foreclosure from happening. One of the reasons as to why it is still unpopular is due to the misconception in the property markets that lenders want to reap big through exploitation from such deals.
On the contrary, during a short sale, since the lender is business, they just want to recoup their money as much as they can to avoid further losses. Furthermore, they can also agree or reject an offer from a potential buyer and it does not matter whether the seller has agreed to the terms of sale.
Kevin Bratch concludes by saying that a short sale will only happen at the lender’s discretion.
By Kevin Bratch - Real Estate Investor
Kevin Bratch offers that although it is uncommon, this complicated process sometimes happens and it is usually very important for both parties to fully understand what they are getting themselves into so that they do not stir up any trouble in the future after the deal was long done with.
