All are Short Sale Transactions and the Homeowner. We are Short selling in California. And a homeowner needing to sell a home that is now worth a lot less than its due is now becoming. More common in many parts of the state. This is due to the sharp drop in home sales after the economy went into recession about 18 .months ago, as well as the fact that many homeowners are sitting on mortgages that are about to rise in interest rates. Short Sale Transactions and the Homeowner
A short sale is the sale of a home for less than the amount owed. The term itself comes not only from the expectation that the sale of such a house will happen relatively quickly but also due to the fact that the owner is going to sell it “in a short time” or at a price below the mortgage. This should be especially frustrating for many California homeowners who have experienced record increases in home prices over the past decade or longer. Short Sale Transactions and the Homeowner
There are millions or even billions of dollars worth of homes on the market today in the state. and many homeowners are nervously looking at their adjustable-rate mortgages (ARM), realizing that their initially low monthly payments are about to increase by hundreds or even thousands. dollars per month, and without the ability to make such a new payment.
Short Sale Transactions
One might ask why people took out mortgages like ARM, but no one suspected that house prices would fall so quickly when the recession really starts heating up. Rather, they expected to be able to live in the house for a couple of years, and put it up for sale at a new and much higher price (given how house prices were rising, this was a reasonable assumption). And then sell it at a good profit and move into an even better house.