Short Sales get a makeover

Thanks to our fantastic economy I have been brushing up on the rules and processes of the Short Sale. Basically the bank or mortgage lender agrees to discount a loan balance because of an economic or financial hardship on the part of the borrower. The home owner then sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender. Be aware however that the lender may or may not forgive the outstanding balance. The reason people opt for the Short Sale over Foreclosure are for the much less severe credit and credit history ramifications. The Reason banks go for it is because they tend to come out much better financially with a short sale than a foreclosure, and they really want what’s best for you and your family…NOT! I saw in the news today that there are new rules on short sales that will help relieve the ambiguity of the sales aspect and significantly speed up the sales and closing process. Check out the News Story here-www.suntimes.com/business/2142369,CST-NWS-SHORT06.article