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A short sale realtor is required only in case where the unsettled debt against an asset becomes more than the value of the property. It is a great way by which a borrower can pay off his unpaid loan amount to the lender with the amount received from the selling of the property. This would also successfully avoid foreclosure on their credit record.

Although the selling procedure does not cover the entire balance that is outstanding, still the lender accepts the amount at a reasonable loss which is far better than not getting any return from the borrower. In order to initiate the process of short sale realtor, both the parties must give their mutual agreement so that it benefits both of them. Without this process, things could have been really tough for the borrower as they would not only faced the foreclosure but also the bulky fees allegedly charged by the bank.

The way the short sale realtor works

Owing to the adverse financial state of the borrower, the bank agrees to cut off the loan amount such that the payment process gets completed from the part of the debtor. Although selling of the property at a lesser value seems to be a big loss for the property owner but when surrounded by such a complicated condition, there is no other better alternative than this. The bank too incurs a loss which is accepted as long as the debtor pays off something against the loan amount to save themselves from the clutches of foreclosure and also control partial debts. A short sale realtor is less expensive and more effective than any other recovery procedures, giving relief from paying the rest of the due amount.

The additional participants of this process

The success of this procedure usually varies from bank to bank and also depends on the state specific regulations that generally influence the credit. The short sale realtor of Bank of America holds the maximum failure rates, being the longest time taker to provide the approval in the year 2009. But in comparison, the likes of Wells Fargo and Citibank seem to operate much faster, providing their consent within days and not in months.

The implications laid by the credit policy

It is very sarcastic to implicate the process of a short sale realtor which in terms is a type of clearance that affects the credit report but not as poorly as the foreclosure does. The short sale hardly stays for seven days on the credit report of the borrower unlike bankruptcy and you can again retain a new mortgage after 1 to 3 years or even less in some cases.

In case of fraud schemes

It is often heard that the debtors engages themselves in several frauds relating to the short sale. In certain cases, the cheats do not disclose the value of the amount to their lenders appropriately or demands for bribes in the form of cash payments from the estate agents as well from the purchaser of the property. These are all clear cases of frauds as rules suggest that every payment should be enclosed with a disclosure, which is displayed at the bank.