It mans that the bank is letting the current owner out of the mortgage
by selling the house for less than they owe, because the bank thinks
it will lose less money this way than by foreclosing and selling it
I have no useful info on whether buying one is good idea or not.
Its the latest "morph" of the English language....
it "now" also means
giving the house back to back,
"jingle mail" (keys in the envelop to the mortgage servicer, w/o a
I have no idea how it got started but it spread faster than the swine
flu...might be to il-informed on the TV news
Not exactly. In a short sale somebody owes more than the house is
worth. The bank agrees to forgive the mortgage for the amount of
The pragmatist in me says it looks like a good idea for everyone
involved. There is another part of me that sees a lot of room for
collusion and abuse.
You are correct...a "short sale" is a more orderly / civilized /
cheaper / faster way to resolve the "underwater" problem, than a
traditional foreclose. But the results are more or less the same:
Loan holder loses capital, borrower loses down payment (if any) & the
anyone know how this effects the borrowers credit compared to a full
Is the "short sale" less damaging to credit history?
It transacts pretty much like a "normal" sale expect the "seller" is
usually the bank. Here in SoCal even traditional realtors are
handling some of the sales of bank owed homes.
Just evalulate like the purchase of any home.
Check local rents
getting a house in decent shape for 10x yearly rents (or less) is
most likely a great bargain
getting a house in decent shape for 20x yearly rents (or more) is not
in between is where most normal deals get done (not in 2004 thru 2006)
HomeOwnersHub.com is a website for homeowners and building and maintenance pros. It is not affiliated with any of the manufacturers or service providers discussed here.
All logos and trade names are the property of their respective owners.