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With the rise of short sales by homeowners behind on their mortgages, Zip Realty has added the ability to search for homes that are being offered as short sales.
A short sale is when a home owner is unable to pay on their mortgage and the home that they have can not be sold for the amount due on the loan. Instead of taking the home back as a foreclosure, the bank allows the homeowner to put the home on the market and sell it for less than the mortgage owed. The bank then will accept the lesser amount because it will still cost less than the cost of foreclosing upon the property owner.
The property owner in a short sale will have the difference in the mortgage and the selling amount be reported to the IRS as income but it also keeps a foreclosure from hitting their credit report.
3 comments ↓
I used Zip Realty and was impressed by their website. Also the check I got back at closing was very nice.
so what deciedes a Shortsale value ? and how can one judge what is a Good Deal …
I was a little curious about the idea behind short sales too. I found some great information at http://www.shortsellhouse.com
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