What is a Short Sale? Minnesota Definition

(My Original Blog Post: http://ping.fm/KEbEX)
What is the difference between a real estate short sale vs. foreclosure home and what does it mean and how does it work?

Minnesota Short Sale Homes

What is the difference between a real estate short sale vs. foreclosure home and what does it mean and how does it work? This is a popular and important question in today’s national economy. I will define a short sale for you later in this article, but first I want to tell you why their seem to be so many short sales going on right now, so I will get into the definition of short sale in just one moment, but first please let me go over some of the common reasons and situations on how a homeowner gets into the situation and then on how to save your home from foreclosure through what’s known as the short sale process. I believe some of the most common situations that the homeowner gets into resulting in pre-foreclosure, is that they get behind on payments, and soon they are facing foreclosure, they soon learn that due to the current real estate market and how home values are going down quickly It’s then, that the homeowner realizes they have little or no equity and therefore they can’t afford to even pay real estate commissions. If it’s an investor or burnt out landlord they may get into a situation where it needs too many repairs, of which they can’t afford, and then the property becomes a vacant house due to many reasons like a job transfer, or a sudden need to move. Here is where the homeowner needs help and at this point we will call upon a short sale specialist as we now have an owner with amortgage with a lender like Countrywide or a bank like Wells Fargo with a short sale house situation.  We may have you talk to a real estate attorney about Minnesota Foreclosure short sale law.

The definition of a Real Estate Short Sale is: A lender’s agreement to accept less than is owed (short payoff), as an alternative to foreclosure.

A message to all of my readers, I am going to try to keep updating this article over a period of time as I learn new ideas and information to help homeowners, investors, buyers, and anyone related to real estate with this popular subject. Let me now get into some short sale information and see if I can help answer a lot of the questions about the process and how shortsales work in Minnesota, let’s go over why a lender would even do a short sale.