If you owe more on your mortgage than your home is worth and you can no longer afford to make the payments you might be able to sell it for less than you owe.This is known as selling your home on a short sale. In many cases, the distressed homeowner can do this without being forced to pay the lender the difference.
A short sale is when you sell your home for less than you owe on your mortgage. If the lender agrees to accept a short sale he may also agree to forgive the remaining balance. The reason a lender would choose this option is because with a short sale they are taking a small loss now and avoiding the costly process of foreclosure.
There are some consequences to a short sale; however, it is an alternative to foreclosure. At least the homeowner is showing good faith in making an attempt to repay at a portion of their debt.
A Winning Situation for all
A short sale can be a win-win-win; that’s right; 3 wins! The seller, the buyer and the lender can all benefit in some way.
• The seller gets out of the mortgage without facing foreclosure or filing bankruptcy

• The buyer or investor gets to purchase the home at a reduced price

• The lender minimizes his loss without going through the process of foreclosure and being stuck with a property that continues to lose value as market prices decline.

The short sale process can be complicated as there are several parties involved. The homeowner must find a buyer while dealing with the lender and in some cases, the foreclosing attorney if the foreclosure process has already began. The buyer is way ahead if he is able to pay cash for the home and avoid the mortgage application procedure.
Quite often, the buyer is an investor who plans to resell the property; sometimes on the same day he purchases it. How does he do this when guidelines require seasoning? Seasoning is the requirement that a buyer own the property for a specified amount of time before selling.
Jodi Funke is a transactional lender who specializes in real estate short sales and the resale of property purchased on a short sale. She has built a nationwide network of attorneys, real estate professionals and title companies who are experts in short sale transactions and back-to-back closings. Visit http://www.cashforshortsales.com a company who provides one-day funding to the investor who is buying the property on a short sale