A short sale in Irvine is what happens before a foreclosure. Actually, the hope is that a foreclosure can be avoided altogether. That’s why the bank puts together an awesome deal on these homes, in hopes that they will move quickly.
This is the most popular way to buy for those who want to save money, and are willing to go through a long drawn out process to save it. Short sales are initiated by the person who took the mortgage out, and then agreed to by the bank.
Short Sales are such a smart way to purchase a home. Unlike an auction home, or a foreclosure, the listing price is typically substantially decreased from the remaining mortgage amount. Banks allow this so they can get the home into the hands of somebody who will be capable of making payments.
A short sale would happen in a situation where a person owes $110,000 dollars on their home, and to get out of it, tries to sell it for only $100,000. For those reasons, a mortgage saves tons of money in certain circumstances. Unfortunately, a short sale can also happen when a person owes $200,000 but their home is now only worth $120,000. That situation is a no win for anybody. But let’s be realistic, homes will never cost that little in Irvine.