Other than investors, there are few people who get excited about short sales. However, I want to show you why these transactions are a win for more than just buyers in today’s market.
- 1. Short Sales are a win for tax payers. As with any business, a negative balance that is written off harms tax payers. Especially when our government is continually bailing out banks. Now obviously, short sales still cost banks money and they take a loss. However, the loss is statistically much less due to the legal costs of a foreclosure.
- 2. Short Sales are a win for your neighborhood. No one loves to see a distressed property listed in their neighborhood. However, since foreclosures are vacated with the power turned off, their curb appeal is much more degrading and harmful to the neighborhood’s value than a short sale. Until the ownership transfers on a short sale, the owner of the property has the right to remain in the home which helps the property maintain it’s appearance, which helps the neighborhood’s value.
- 3. Short Sales are a win for sellers. Credit dings, 1099′s, and a potential promissory note. So what is good about a short sale for a seller? Many banks are now waiving their deficiency judgments, the credit hits are less, and you can purchase much sooner after a short sale. Oh, and don’t be deceived… Most of these penalties can still happen with a foreclosure. So there is no denying that a short sale is your best option!
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