ALL ABOUT SHORT SALES Terminology, Timelines and the Short Sale Process |
Our goal is to provide you with all the answers to questions you may have on Short Sales. To better understand the Short Sale , one should understand the terminology used in a Short Sale. Here are some answers to commonly asked questions.
What is a short Sale?
Short selling a home is selling it for less than what your loan/loans amounts are on the property. It often occurs when a borrower cannot pay the mortgage on their property, but the Lender decides that selling the property at a moderate loss is better than pressing the current debtor. Both parties consent tothe short sale process because it allows themt hem to avoid foreclosure, which involves hefty fees for the bank and poorer credit outcomes for the borrower.
What is a default
The failure of the borrower to make payments as agreed, possibly resulting in foreclosure.
What is a Deed?
A legal recorded document which shos the transfer of ownership of real estate from the one party to another.
What is a Mortgage?
A mortgage is the transfer of an interest in property (or the equivalent in law - a charge) to a lender as a security for a debt - usually a loan of money. While a mortgage in itself is not a debt, it is the lender's security for a debt. ...
What is a first Mortgage?
A mortgage that has first claim in the event of default.A mortgage which is in the first lien position, taking priority over all other liens.
What is a Second Mortgage? (Sometimes called the Second)
A second mortgage typically refers to a secured loan (or mortgage) that is subordinate to another loan against the same property.
The use of two lenders in a real estate mortgage in which one lender holds a first mortgage on the real estate and another lender holds a second mortgage.
An additional mortgage on a property, the second mortgage. It often carries a shorter term and a higher interest rate than the original mortgage.
What is a Lien?
A legal claim usually against a piece of land for payment of some debt, obligation, or duty. Some forms of liens are tax liens and materialman's liens.