Question:

Who benefits from a short sale contract?

Answer:

Short sales are said to save the homeowner from foreclosure. However, he is the last on the list to gain benefits from a short sale contract.

Who reaps the benefits of a short sale contract?

  • The lender, because they may get a huge part of their money back.
  • The real estate agent hired by the buyer who does the short sale research and paperwork.
  • The buyer, who gets a nice house for up to 70% of its value.

The short sale contract informs the lender of the settlement arrangement between the buyer and the seller, does providing that the seller will not be reimbursed without the lender's knowledge.

Short sale contracts are often accompanied by a seller's request to be paid $1000 or $2000 to agree to sell the property to the buyer. This constitutes a fraud and the lender sued the homeowner.

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