Who Benefits From a Short Sale?

Short sales are beneficial for all the parties involved, but it just depends on how those parties are looking at it.  It is beneficial for the homeowner who needs to get their short sale listed, the buyer is getting a home for a lesser price than normal, and the bank is able to move a property without it going into foreclosure.

While lenders are not required to negotiate the balance on the loan they seem to be more willing to work things out these days.  With the pressure of what is going on in the market, it is not wonder that the short sale has become a better option. 

So, the bigger question is who actually makes money on a short sale? Short sales are profitable for all parties except the seller.  The buyer will make money in a less traditional way.  They will be able to save money by getting a little bit more home for less money, and they will come out ahead in terms of the equity they will acquire over time.  The bank will make money instead of taking a loss because they will indeed sell the home rather than having to foreclose, but the seller just gets rid of the house.  The biggest bonus for the seller is that they will not have a foreclosure on their credit and will be able to walk away with some dignity.  The seller won’t be proud of the situation, but they will be able to get out from something they thought was impossible, and they can start repairing their credit by paying down other obligations.  This will help them build up some cash flow before buying another home. 

The title companies also make money on a new short sale, because they are righting a new title for the buyer and recording for the lender.  Escrow companies will also make money because is most cases they are a third party to the transaction.  They get paid by the lender, or the fee may be divided between the buyer and the lender. 

When selling a short sale, it is wise to get legal advice and with any new contracts these attorneys will get their share of revenue too.  There are attorneys that negotiate short sales, and so they charge a fee for the service they provide.  There are many aspects of how revenue is generated from a short sale, but there are many people that benefit from it. 

When looking into a short sale, it is beneficial to inquire from the experts.  You need a professional that can guide you through the process and explain things to you in a way that you understand how it pertains to you.  Be sure to visit www.inlandempireshortsaleresource.com for more details.