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Nashville Real Estate A Quick Guide to Short Sales in Nashville

Short Sales in Nashville 

Nashville is known as the center of the music industry, home to many universities and an influential center for the healthcare industry. The city is located in the north central section of the state along the Cumberland River. It is home to a vibrant publishing industry, has important banking companies located in the area and is a hub of activity.

A short sale is a type of real estate sale which allows the liens on the original property to be released with a lesser amount than the balance of the debts. The liens that are securing the mortgages are released for the owner. There can be a residual amount that is due on the debt balance. The agreement between the original lien holder and the debtor needs to specify that this residual amount is released as well. Buying a short sale includes working with the lien holder as the new buyer of the property. There can be agreements signed with the mortgage holder that protects a new owner from any past debts that have been secured with the property.

Short Sale Process

A short sale purchase is a special process that includes the following steps:

1. The original debt holder has agreed to sell the property at a lesser price than a market appraisal usually specifies.

2. The original debtor has been approved for a short sale. An approval for this type of lien release needs a hardship letter that has been approved by the lien holder. The seller has been approved for a short sale because of a financial hardship.

3. There have been two appraisals on the short sale property. The first has been completed by a professional appraiser, and the second appraisal has been provided as a broker’s price opinion.

4. These evaluations determine the value of the short sale agreement and home purchase price.

5. The new buyer pays the short sale or new home price. The past liens on the newly purchased property have been released.

Why Purchase a Short Sale Home

A short sale home usually has a good price that is lower than the appraised market value of the house. The new owner will gain immediate equity in this type of property. A new home that otherwise would be unavailable for sale can be purchased in prime locations. These short sale homes are available for purchase ahead of certain other real estate market listings.

Buying a short sale home can be a profitable purchase. This type of purchase usually comes with a significant amount of immediate equity. The houses are placed on a short sale list that is put out for sale ahead of the standard home real estate market. A buyer can find bargains and otherwise unavailable real estate gems. A legal agreement with the original lien holder protects the new buyer from any encumbrances on the property.

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