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Get into a short sale agreement to reduce your debts

The short sale (任意売却) refers to the sale of the real estates. In this kind of sale, the proceedings, which come from the sale of the property, actually falls short with the balance of the debts. This actually happens when the real owner of the property cannot afford to repay the full amount of debt to the lien. The agreement of short sale (任意売却) do not release the obligations of the borrower related to repayment of the deficiency fully. The borrower may be released but with the consent of both the parties of the contract.
The complete process of the short sale
In the case of short sale (任意売却) agreements, the borrower needs to prove his inability in relation to the repayment of the debts. Any unpaid amount in any sale of this kind is known as deficiency. Many of the large creditors have a special department called as loss mitigation for the borrowers to provide them with the approval of this agreement. The creditors accept the applications of the borrowers in respect to their policies and kind of loan. The agreement of short sale (任意売却) also has a high risk of being rejected.
Short sale reduces the debt of the borrowers
The negotiation of short sale (任意売却) actually helps in reducing the actual amount of borrower, which he has to pay as debt. The agreement acts as the settlement of the debt of borrower. All the creditors who practice any sale of this kind or loss mitigation should be licensed and approved. Most of the times it happens that the creditors are not licensed but then too they are practicing such agreements. The creditors also require gaining the required information from the professionals or from the real estate brokers for a short sale (任意売却).
One should be alert from the frauds in short sale agreements
Most of the times it happens in 任意売却 agreements that creditors are doing fraud with some of the borrowers. Therefore, you need to be alert from such kinds of fraud being practiced. One of the fraud in which the creditors are involved in the process of such sale is obtaining kickbacks in the kind of cash payment obtained by a real estate agent or by a buyer. After involving in any sale process in may become difficult for a borrower to obtain a new mortgage or loan as his application may get reject. All this happens because the agreement of a 任意売却 shows the incapability of the borrower in repaying.