Short Sell Question
Please forgive me if this is too basic a question but I'm working as a Bird dog and having some success in doing that. But I'm still ignorant on a lot of Real Estate terminology. Can someone please explain to me what a short sell is? Again I apologize for such a basic and beginner question. Thanks
Rns
I am a rookie myself, but this has been a topic in my rei club. A short sell is a sale in which a buyer convinces a lender to allow the sale of the distressed seller's property at a price below the balance of the outstanding loan with the lender forgiving the remainder of the balance. As I understand it, the lender benefits by getting a bad loan off the books and freeing up required reserves in excess of the loan balance. I don't know the ins and outs of how this is done though.
Pretty good. Actually, it is the [bi]Seller[/bi] who must convince their mortgagee to permit the Sale. It is the Seller who seeks the relief. It is the Seller who gets the relief. The Buyer can assist the Seller by devising a compelling and fact driven Proposal that should accompany the basic, boilerplate application to the lender for short sale consideration.
The accompanying Proposal will address matters that are not included in the basic application... and speak for you when you aren't able to directly communicate with the mortgagee.
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