There's a lot of real estate lingo out there that most people have no idea what they mean. Doesn't matter if you're trying to sell real estate in Vaughan or buy real estate in Toronto. The real estate terminology is just too vast to grasp a clear understanding of everything. Luckily you've hired a Vaughan or North York real estate agent to help you out through the process. It's their job to speak the language and all you have to do is sit back and watch them do their thing.
There are situations you might find yourself before even hiring a real estate agent in which you might not know what's going on but would like to. Such a scenario could be if you're faced with the situation of a short sale. You might not know what it is but need to know. Which is why we're here. We're going to tell you a bit about a short sale and whether or not it would be the best option for you.
In real estate terms, a short sale can be described as the process of selling a property in which the lender decides to accept less than what is owed them in order to receive some sort of a payment. So, if a homeowner can't pay off the remainder of their Vaughan or Mississauga mortgage, the bank will allow them to sell the property and accept whatever amount the home sells for as payment. Knowing that they won't get the full retail value for the home for sale in Markham or Vaughan in return. Basically the lien against the house will be released once the money from the sale is received by the bank.
So, if a homeowner has a mortgage loan to pay of $125,000 and can't pay it off, the bank will set up a short sale and accept a respectable payment in return. The bank will not get the full $125,000 but will settle for an amount that is close to it. Just so they receive some sort of payment instead of nothing at all. The homeowner loses out on a home but gets out of paying their mortgage.
Now, is this a situation that you should consider when looking at a Vaughan or Oakville home for sale? One good thing, and one that is very appealing, when it comes to buying a short sale property is that you will be getting a bargain. The home will be on the market for less than retail value which means you'll be getting a good discount on the property. However, you need to weigh that against the negatives. The name short sale can be misleading. You might actually be waiting months for the home to close if you make an offer. There's a lot of paperwork that needs to be filed and there may be more than one lender who both have to agree to the offer. As well, short sale homes are usually being sold "as is." So, the lender won't guarantee any payments that might be needed for repairs.
So, if you're faced with a short sale, go in with open eyes. If it's a deal that is too good to pass up it might just be. | 