The website eHOW offers a clear-cut defintion: "A short sale in real estate occurs when the outstanding obligations ( loans ) against a property are greater than what the property can be sold for. Short sales are a way for homeowners to avoid foreclosure on their homes and still be able to pay off their loan by settling with their lender. Real estate industry expert Elizabeth Weintraub cautions that just because a property is listed with short-sale terms does not mean the lender will accept the offer, even if the seller accepts it. Lenders, Weintraub points out, typically do not consider a short sale until the seller is in default and has stopped making payments. Buyers looking at below market-value homes should also realize that the seller may owe more than the home is worth, so " a discounted price might bring the price in line with market value, not below it ."
For sellers, the benefits of short selling outweigh going through the foreclosure process. A foreclosure can put a long lasting black mark on one's credit rating and the process itself can be long and expensive. On the other hand, a short sale can be quick, less expensive and doesn't look as bad on your credit history. For specific information on the tax implications, talk to your tax advisior or visit http://www.irs.gov/.
If you have any questions regarding real estate, contact us at JerryGea@comcast.net or visit our web site at www.SheilaGea.com.
About Me
- Real Estate For Rookies
- Jerry Gea retired from his position as Regional Vice- President of Olympic Steel, Inc. in February of 2005 and earned his real estate license in October of that year. He then joined his wife, Sheila, a realtor since 1988, to form "Team Gea" in the company of Long and Foster Real Estate, Inc. in southeastern Pennsylvania. Subsequently, Jerry earned his e-PRO certification to become one of a few select real estate professionals to earn the prestigious certification offered through the National Association of Realtors. Jerry also holds a BS in Industrial Engineering from the Universtity of Illinois and a MS in Industrial Management from Purdue University. His extensive experience in sales, sales management and executive management compliments his wifes extensive experience in the Real Estate Industry. Sheila holds several distinguished designations in real estate including, ABR (Accredited Buyers Representative), CRS (Certified Resident Specialist) and GRI (Graduate Realtor Institute). Sheila is also a licensed broker in the state of Florida. Together, they make a formidable team in handling all levels and types of real estate transactions.
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