A short sale is an agreement for a sell and rent back to occur where the money received from the sale of a property will fall short of the outstanding debts secured by mortgages against the property. If all lienholders agree to take less than the full amount owed, a sell and rent back of a property can actually be completed. A sell and rent back (SARB) is not the same as a mortgage refinance or a home equity loan. With a sell and rent back, the money received from the sale of a property is used to pay off the existing debt. There are two ways that a sell and rent back can be completed.

what is a short sale in real estate

The first way that a short sale process can begin is through a process known as a “completion of contract”. This can take two weeks or more but will involve getting the consent of all creditors involved in the short sale agreement. Once that consent has been received, the process begins with getting the permission of all liens and encumbrances on the home. Once all of those consents have been received, the sell and rent back company will submit a request to the court to approve a short sale. If the court approves it, the company will contact the owner of the home and notify them that the short sale has been approved. When that happens, the company will contact the owner and arrange for them to come to the house to sign the documents for the short sale. This can be done as soon as the company has received the consent of the owner of the home.

The second way that a sell and rent back in real estate can begin is through a process called “settlement of accounts”. This process involves working with a sell and rent back company to try and reach a settlement agreement with the owner of the home. Once the company is able to work out a settlement agreement, the agreement will be put into the record and a short sale application can be processed.

Once a short sale is complete, the person who is receiving the money will not be given the home. Instead, the money will go to the person who owns the home and they will be responsible for the monthly payments that are required to be made. for the outstanding debts. The monthly payments that will be made will depend on the type of short sale agreement that has been reached. It is possible to receive monthly payments and even partial payments depending on how the agreement is structured. and will be determined at the time of finalizing the sell and rent back plan.

What is a short sale in real estate can be a difficult process for many people. If you or someone you know needs help with understanding the process you can talk with a sell and rent back company to discuss options and see if one may be the right solution. Many companies offer their services to people who are in need of this type of help.

The short sale process of selling a home can seem very complicated, but once you know the basic steps involved, it should make things a lot easier. With the help of a professional company and the assistance of a real estate agent, a person can complete the process of selling a home through short sales and avoid some of the hassles that often come with a foreclosure.