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Southern California short sales occurs when the lender agrees to accept the amount less than the remaining balance of the mortgage loan. This agreement between the lender and the seller confirms that the lender forgives the rest of what was owed on the property. The seller who is experiencing financial difficulty will then have an option to avoid going through a foreclosure. Going through a short sale will damage the credit score of the seller but not as much as a foreclosure. Buyers of picks up a home at a discount while the lender avoids taking on the burden of unloading the property. Buyers may purchase Southern California short sales at a great discount but they should be willing to go through some extra paperwork and if the property needs to be fixed, then be prepared with added costs.

Sellers who choose to go through a short sale will have to comply with the following requirements like a letter explaining why they can no longer maintain the payment of the mortgage. The reasons may be the following: divorce, medical issues, financial difficulties or job loss. You need to supply proof like bank statements, tax returns and other documentations. Watch the video for further information to determine if you are suitable to go through a short sale.


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