What is a short sale on a house
What are the risks of buying a house in a short sale? Another risk of a short position is the loss of property by a cash buyer or a buyer who can make a large down payment. By accepting short sales, banks and other lenders prefer to deal with these buyers. They see them as less risky than buyers who have to take out large mortgages to buy real estate.
What happens if I Sell my House in a short sale?
A short sale is when you sell your home for less than the amount you owe your mortgage lender and the lender receives the proceeds from the sale. The lender can cancel the loan balance or file a shortfall decision against you (if allowed by state law) and ask you to pay back the difference between the sale and the loan balance.
How to buy a home through short sale?
- Do your research. Go through the short sale process with an experienced broker.
- Receive a property tour and a disclosure statement. If the property is not for sale, the area may not be well cared for.
- Make an offer. If you're not buying with cash, the first step is getting your mortgage upfront.
Why to buy a short sale?
There is only one reason to buy a house for sale: to get a good deal. "Short selling" simply means that the selling price is less than the mortgage balance. Short selling can take longer because lenders don't sell homes.
Can a property be classified as a short sale?
Just because someone advertises a property as a short sale doesn't mean they're approved to do so. You may think they are suitable for short selling, but if they are not actually approved by a bank or mortgage lender, this review is meaningless.
What happens if there are two loans on a short sale?
If there are two short sale loans, you will need approval from both lenders to close. You are at risk if you do an appraisal or inspection of your home before getting approval from either lender. One lender may agree, while another may object to the short sale or object to the seller's contribution to HUD.
Can you do an inspection on a short sale home?
In many cases, you can view your home before making a purchase. However, if serious problems are found, it will not be possible for the bank to ask for a concession or a reduced sale price to cover these costs. You should seriously consider doing a short-term home inspection.
What is the best website to sell your home?
What is the best website to look for a house?
Top 8 Websites for Finding a Home in 2019 1. Redfin - The Best Choice for Finding a Real Home 2. Zillow - Find Out How Much Your Home Could Be Worth 3. Google Maps - See the Neighborhood and How They've Changed 4 AND Your Local Audience 5.School Website: To Find Out How Much Cable and Internet Cost.
What are some things to know when buying a home?
7 things to know before buying your first home 1. The buying process is taking longer than expected. 2. Prequalification is important. 3. There are various options for a home loan. 4. The seller pays the buyer's broker. 5. There are closing costs. 6. You may have to pay for mortgage insurance.
What are good tips for buying a house?
- Qualify for the lowest mortgage interest rate. House prices have risen in recent months and are expected to rise again this year.
- Before you start looking for an apartment, ask for permission. Pre-mortgage approval is non-negotiable in this environment.
- Work with an experienced broker.
What are the risks of buying a house on short sale calculator
Another risk of a short position is the loss of property by a cash buyer or a buyer who can make a large down payment. By accepting short sales, banks and other lenders prefer to deal with these buyers.
How is a short sale different from a foreclosure?
Short selling is different from traditional home sales and bankruptcies. In a traditional home sale, you simply work with the seller and their real estate agent to prepare a quote. At the time of foreclosure, the lender has already bought the property, so you make an offer directly to the lender, without the buyer's involvement.
Why do you want to do a short sale?
There are many reasons why homeowners can short sell, but one of the most common is to avoid foreclosure. If you are a buyer, the short sale allows you to buy a property at a lower price because the seller is in trouble and has fewer options.
How to get a mortgage for a short sale?
Get your mortgage pre-approved - Buying a short-term home starts like buying another home - Lender pre-approved. They tell you how much you can afford, how much money you need, and what your monthly expenses will be.
What do you need to know before buying a house?
10 things to know about real estate before buying a home 1. Follow your real estate agent's advice for your inspections. 2. Ask the arborist to inspect the trees. 3. Make sure there are no poisonous or invasive plants in the soil. 4. Look for damage where you see the vine. 5. Avoid dehydration.
What to know before selling a house?
Before selling a home, you will need a title search, survey, property tax receipts, and mortgage receipts. You will also want to provide your broker with the equivalent of utility bills and other related information for the year; it's best to be honest and give this on open days. Take the time to fix it.
How expensive of a house should I be buying?
Another general rule of thumb for housing is that you should buy a house that costs no more than two and a half or three times your annual income. For example, if you and your spouse earn $100,000 a year together, you shouldn't spend more than $250,000 on a $300,000 home.
When is the best time to buy a house?
Late summer is the best time to buy a home if you want to shop with enough inventory to find a home you like while taking advantage of sellers who drop prices until the fall. August is therefore the best month to buy a house.
How much does it really cost to buy a house?
According to the census, the median sales price for new single-family homes in 2019 was $321,500 and the median sales price was $383,900. The median size of a new single-family home sold in 2019 was 2,322 square feet.
When is a short sale a good thing?
A short sale usually occurs when a homeowner defaults on mortgage payments due to financial difficulties. For a bank or other lender with a mortgage, a short sale is better than a foreclosure.
Who buys houses for cash?
All-cash offers usually come from two types of buyers: individual buyers (who want to live in the house themselves) who buy without the help of a bank, and real estate investors, also known as iBuyer.
How do you find a house for sale?
Usually, buyers can find real estate online, including properties listed for sale by owners. This should be the starting point of your real estate search. You can narrow your options down to a few good candidates online without wasting time and money on a physical property inspection.
Where is the best place to buy a house?
Rising wages and new construction keep pace with rising home prices in several US cities, economists say the best places to buy a home in 2019 aren't just the cheapest: Miami, Boston, Boise and Phoenix are among them. the best real estate markets for home buyers.
Where can I buy cheap houses in the US?
Travel to Detroit in search of the cheapest homes in America. The median home price in the city is less than $35,000, and even cheaper homes can be purchased in some areas.
When does a short sale of a home occur?
A short sale is the sale of a home for less than the homeowner owes on the mortgage. A short sale usually occurs when a homeowner defaults on mortgage payments due to financial difficulties.
Can a short sale be used to avoid foreclosure?
A short sale is an option for homeowners who are inundated with their mortgage to sell their property and avoid foreclosure. For many homeowners in need, short sales are an alternative to forced sales. Here are the steps sellers should take to sell their property in the short term:
Do you have to sign off on a short sale?
Talk to Your Lender About the Short Sale Since a short sale means trying to sell your home for less than you owe on the mortgage, your lender must approve it. But first, the lender needs proof that the short sale must go through, says real estate agent Lisa Blake, also of Blake's team at Keller Williams.
What happens if a house is a short sale?
The fact that the house is for sale for a short time does not mean that the asking price is high. Lenders try to get as much money back as possible and often charge a competitive price. The house may require expensive renovations. Some homes that don't sell for less than they sold fall into disrepair because the owner can't afford repairs or maintenance.
Do you have to pay taxes on a short sale?
The difference between the short sale amount and the actual mortgage balance is considered debt forgiven. The IRS treats this income from debt as written off, and in most cases you will be taxed. However, there are exceptions. It is always advisable to consult your tax advisor before making a tax decision.
What do I need to know to sell my house without a real estate agent?
How to sell a house in 2019 without a real estate agent?
Step 1 : Prepare your home for market entry
Step 2 : Rate your home for competition, for sale
Step 3 : Get a flat-rate listing from the Multiple Listing Service (MLS)
Step 4 : Promote your property
Step 5 : Organize an open house
Step 6 : Know the benefits of your property.
How can I Sell my Home myself without a realtor?
- Clean your house. When preparing your home for buyers, do not rush to clean.
- Determine the price. The best thing you can do is make sure your home is worth the right price.
- List your home and provide details.
- Organize an open house.
- Discuss proposals.
- Make sure everything in your contract is legal.
- Be patient.
How do you buy a home without a realtor?
It is possible to buy a house without a real estate agent, and it is not as difficult as it sounds. Make your wish list. The first step in buying a home is to make a list of the features and accessories you will need in your next home, and then make a list of the features and accessories you would like to have.
Should you sell your home without a real estate agent?
Yes, selling a home without hiring a real estate agent can cost thousands of dollars, which sounds tempting, especially when home prices are rising. But is this the best step? Ultimately probably not. It is best to hire a professional real estate agent for a flawless sale of your home.
What happens if i sell my house in a short sale calculator
How much capital gains tax you pay for your home depends on when you sell it. If you sell your home a year or less after purchase, you will pay a short-term capital gains tax equal to your income tax rate.
What happens to my mortgage after a short sale?
The money spent on buying a home goes to your lender and your mortgage debt is forgiven. If you qualify for HAFA, you also get $3,000 to withdraw. If not, just put the mortgage debt on your shoulders. How Long After a Short Sale Before You Can Buy a New Home?
What are the costs of selling your home?
Depending on the amount of the deposit of the buyer and his place of residence, this can be from 2% of the sales price. More information These are the costs you incur when moving from one home to another. Some examples include paying a short-term lease, paying two mortgage payments, or renting your home to a buyer before moving in.
Do you need a realtor to do a short sale?
Contact a broker. Of course, you need a real estate agent to sell your property, and since short selling is difficult, you need a real estate agent with experience in the short sale process to close the deal. You can use the Find a Broker tool to find brokers in your area with specific expertise.
How does the home sale proceeds calculator work?
The Home Sales Income Calculator uses the cost of selling a home in your area to estimate how much you can earn from selling your home. This is the estimated amount you will receive when you sell your home, based on your estimated sale price, outstanding mortgage balances, property taxes, and fees.
What are the steps to selling a house by owner?
Steps to Sell a Home from the Owner.
Step 1. Start digging and get to know your house. If you are planning to sell your home, look for information. The more you know about your current home, the easier it is to sell.
How do they sold their house by owner?
- Know your sales pitch. Before you start promoting your home, make a list of specific outlets that you think will attract buyers.
- It's a good time. Keep in mind that the real estate industry has seen a remarkable increase in business over the summer, people prefer to move in warm climates, and that's it.
- Prepare your property for staging.
- Sell your house.
How do I list my home for sale by owner?
Log in to your Zillow profile. Hover over the Sell tab in the top navigation menu and click Sell by owner. Enter your property address and click Next. On the Home Owners Sales page, set the price, add photos, edit the apartment information, and enter your contact information.
How do you buy a house from an owner?
How to Buy a Home Directly from the Owner Contact the Owner Directly - If you see an ad that interests you, write or call the owner for more information and to arrange a viewing. Most likely the host will take you on a tour of the house.
What happens if i sell my house in a short sale in california
A California short sale allows homeowners to avoid foreclosure by selling their homes for less than they should. Successful short sales move ownership from a struggling seller to a qualified buyer. Short selling in California includes certain safeguards to protect sellers from potential legal consequences.
How long can you live in a house before selling it?
And if you've lived in your home for at least two years, you can exclude up to $250,000 (or $500,000 if you're married) from the sale on your taxes; more on that later. Of course, there are times when you can't wait two years for a sale.
What is the fastest way to sell your house?
One of the fastest ways to sell a home is to clear out clutter and make the space livable. The more clutter, the more uncomfortable potential buyers are and the less likely they are to sell the property.
Can I Sell my House fast for market value?
- Consider selling your home for cash to a home buying company. Due to the financial crisis, many people want to sell their home quickly.
- Sell a house at an auction. Have you ever participated in an auction?
- Work with a home sales specialist.
- Change broker.
- Multi-agent method.
- Lower your selling price.
- Avoid the FSBO route.
- Organize your home.
- Time is everything.
How do they market your house to sell fast?
How to effectively promote home signage. The signs encourage homebuyers to call you or your real estate agent right away. Free advertising!. Mailing list with addresses. You can buy broker mailing lists if you are not a recommended seller. If you are represented by an agent, ask about the direct mail program. Submit EFlyer. Technology has facilitated the creation and distribution of electronic brochures.
What makes your home sell fast?
- Choose materials that are easy to maintain. If you are making last minute renovations to sell your home, such as replacing the floor or countertop, choose materials that do not require maintenance.
- Clean personal items.
- A clean mess.
- Update lighting.
- Solve animal problems.
- Update the image.
- Carry out a thorough cleaning.
- Solve minor problems.
- Until the last call.
- Wash the outside.
What happens if i sell my house in a short sale by owner
Selling your home naturally has consequences with a short sale. The IRS treats your canceled mortgage debt as taxable income, so you can continue to owe Uncle Sam income tax. And your credit could suffer if you don't pay off all the debt you were willing to pay when you took out the mortgage.
Why would you need to sell your house for cash?
Common reasons people sell their homes to treasury companies: moving house. The company you work for may have promoted you and you may need to move to a different location. Divorce or divorce. You may have shared assets with your ex-spouse that now need to be divided. Wedding. Heritage. Financial difficulties. Reduce.
What is the process for buying a home with cash?
If you decide to buy real estate for cash, instead of finding a lender, completing a loan application, and submitting proof of income, spend time looking for a home. You can bid, accept and close in as little as two weeks instead of the six or more weeks it takes to run your funded business.
How fast can you buy a house with cash?
You can close your new home faster: When you buy a home with a mortgage, you generally have to wait 30 to 45 days for the paperwork before you can complete your purchase. If you buy with cash, the transaction can take about a week.
Is it illegal to buy a house with cash?
Buying a house with cash is legal, and people often do it because they don't want to worry about a mortgage when their finances are in trouble. You also have another consideration: you could invest in something more profitable.
How do you get a mortgage after a short sale?
There are exceptions to the usual waiting times for a regular loan. To qualify for these exemptions, you will need a minimum deposit of 10% and written proof that the short sale was due to extenuating circumstances. Check if you qualify for a new mortgage.
What are the steps to short sale?
Short sale for sellers. The short selling process for sellers can be broken down into five simple steps: Determine the current situation. Evidence of obvious financial problems. Use the services of a qualified agent. Gather the relevant documents.
How do you buy a short sale property?
According to Bobby Dempsey, co-author of The Foreclosures Buyout Guide, a typical short sale involves a series of steps, usually in this order. Identify potential short sales. Take a look inside the property. Do your research. Find all liens and mortgages. Determine the financing. Contact the lender.
What are the consequences of short sale?
The consequences of a short sale directly affect your credit score. A short sale or foreclosure is recorded as default, further deteriorating your creditworthiness. In some cases, your credit rating may be lowered, meaning higher interest rates on future loans and credit cards.
How to buy a home through short sale definition
Buying a home short is similar to buying a foreclosure, but the two processes are not the same. In a short sale, the bank or mortgage lender does not sell to the owner. Instead, the lender allows the current owner to sell the home for less than his mortgage debt.
Why to buy a new house?
Why you should buy a new home. Buying a new house not only allows you to personalize your interior, it also offers many advantages that you will not find when buying an old house. New build homes are energy efficient, built using modern building structures and technologies and offer low cost home ownership.
How do I buy a new home?
Here are 10 steps to buying a home: Make a schedule with goals and results. Get your credit report. If your credit score is below 600, correct it before applying for a mortgage. Focus on saving. Have your mortgage approved. Choose a broker. Start hunting at home. Submit your offer. Visit and rate the house.
What are some tips for a first time home buyer?
Tips for starters on the housing market. Tips for starters on the housing market. 1. Pay off all debt and create an emergency fund. 2. Determine the number of homes you can afford. 3. Save your first payment.. Find a house for sale in your price range 7. Find the most suitable areas.
What is the process of buying a house?
10 Steps to Buying a Home: Understanding How to Find and Finance the Perfect Home for You
Step 1 : Start searching earlier
Step 2 : Find out how many houses you can afford
Step 3 : Get pre-qualified and pre-approved for a home loan
Step 4 : Find the right broker
Step 5 : Buy your house and make an offer.
What are home buyers looking for in a property?
When they buy a house, they buy a neighborhood. Buyers should look out for the red flag when buying a home, usually in a poor neighborhood. Buyers should look for things like bricked up houses and a large number of vacant houses in the area.
How do you sell a house for cash?
Sell your house for money, sell it fast, sell your houses. Gather all the information you need about your home. Before trying to sell your homes online, make sure you have flattering photos (taken in the spring or summer) and statistics.
How to buy the house and sell it?
How to buy and sell a house at the same time without going crazy. Know the market first. Before you seriously start looking for a new home or launch your current home, it is good to get acquainted with the housing market. Plan your agenda carefully. You may ask: should you buy first and sell backwards?. But don't be fooled by time. Know your financial decisions.
What is a short sale process?
A short sale is the process by which a lender allows a homeowner to sell their home for less than the amount they owe on the mortgage. This is a hefty discount on the house, so it sold quickly.
How to start your home search?
- Apply for a pre-approved mortgage before you start looking.
- Know the difference between what is important and what you want. Do you really need a country kitchen sink to be satisfied with your choice of home?
- Search and select the area you want to live in.
- Pick a home style you like and stick with it.
How do I look for a new house?
7 Things to Consider When Buying a New Home 1. Examine the roof. 2. Carry out a temperature check. 3. Inspect electrical plugs and appliances. 4. Get to the heart of the matter. 5. Look at the water. 6. Open the windows. 7. Look for pests.
What is the most expensive real estate in the US?
Manhattan homes are the most expensive per square foot in the United States, with housing numbers exceeding $10,000: study. Crossing San Francisco - The Big Apple leads Silicon Valley as the most expensive place to live in the United States, according to new research.
How do I get help to buy a house?
The Department of Housing and Urban Development (HUD) offers a variety of federal programs that can help you buy a home if you qualify for assistance: The Federal Housing Authority (FHA), which is part of HUD, offers loans and mortgages. It is easier for potential homeowners to pay off loans. The FHA also has HUD homes for sale.
How does short sale work for buyer?
A short sale works like a normal home sale, where the seller contacts the real estate agent to list their home for sale. The seller informs the broker that it is a short sale and then waits for an offer from the buyer.
When is the best time to sell your home in Chicago?
Chicago's Best Selling Moment The best month in the country to sell a home is the Saturday in the first half of May. According to Zillow, the listed homes sold an average of $1,600 more during this time than at other times of the year. Saturday ads show more views in the first week of the ad.
What is a good neighborhood to buy home near Chicago?
According to the report, Hyde Park, Forest Glen, Mount Greenwood, Uptown, Edgewater, Norwood Park, Garfield Ridge and Jefferson Park are the best neighborhoods to buy a home in Chicago.
What is home purchasing process?
Buying a home can take anywhere from a month to several years, depending on the buyer's experience and expectations. On average, a home buyer can spend a month or two researching deals, weeks negotiating and closing a deal, then make the first mortgage payment a few weeks later.
Why do short sales take so long?
A short sale occurs when the amount of the real estate loan exceeds the sale price less sales costs. In a short sale, the seller asks the bank to take less than the amount owed. This is why short selling can take so long.
Why to buy a short sale home
In a short sale, the bank or mortgage lender does not discharge the owner. Instead, the lender allows the current owner to sell the home for less than his mortgage debt. The advantage of being short is that you can find a property at a discounted price.
Why to buy a short sale house
There are many reasons why homeowners can short sell, but one of the most common is to avoid foreclosure. If you are a buyer, the short sale allows you to buy a property at a lower price because the seller is in trouble and has fewer options. However, you need to be patient as buying a short sale property can take some time.
What to know about buying a short sale?
Here are 10 things to know before buying a short term home. Short selling can take a long time. You may need cash or a large deposit. The houses are sold "seated". Hire an inspector. It can be rejected. Don't worry about the little things. Consider using a broker. Offer the right price. Lenders can change the conditions.
What are the pros and cons of short sale?
The pros and cons of short selling. Short selling can help a troubled homeowner, but it comes with some risk. A short sale occurs when a troubled borrower is able to sell their home for more than the mortgage they owe. The lender must agree to the short sale, and the loan balance is usually paid off after the home is sold.
Why to buy a short sale property
The main reason to buy a low-income home is the low price. As mentioned above, house prices are below market prices, making them a great value proposition and opportunity for real estate investment. Banks and homeowners are also interested in finding a buyer as quickly as possible and accepting cheap offers.
Are there any benefits to buying a home in a short sale?
The advantage of being short is that you can find a property at a discounted price. However, the process can often be long and tedious, and short sales carry unique dangers. There is also no guarantee that you will save money compared to traditional sales. Here's what you need to know if you're considering buying a short-term home.
When is a short sale a good deal?
A short sale occurs when home prices fall and sellers don't get enough money from the buyer to pay their mortgage. A short sale can only happen if the lender agrees to accept less than is owed. At first glance, it seems that a short buyer is getting a good deal.
What's the process for buying a short sale house?
Short selling is similar to buying a house on the market. Start by looking for a home and pre-approving financing (unless you pay cash). Then make an offer, negotiate a sale and close. But each of these steps has unique short homework assignments. Here's what you need to know.
Why to buy a short sale with an fha loan
In a short sale, the house is sold for less than the mortgage balance. Buyers looking for a bargain can easily get a short sale for about 25% less than a sale. Buying a home with an FHA-insured loan can save you extra money on your down payment.
How long after a short sale can I get a FHA loan?
FHA guidelines allow you to qualify three years after a short sale. FHA guidelines require three years from date of sale. The FHA Short Term Selling Guidelines allow borrowers with a credit rating of 500 or higher to qualify for an FHA loan.
Can you purchase a short sale with a FHA loan?
A short sale buyer can obtain a new FHA home loan to complete the purchase. These trades must be ■■■■■■■■ under normal market conditions i.e. TIME. the buyer has no known relationship with the seller, eliminating a potential conflict of interest.
When can I get a mortgage after short sale?
The FHA generally requires the borrower to wait three years after a short sale to get a new mortgage. This three-year waiting period is calculated from the date of the transfer of the short sale title.
Are there any disadvantages to buying a short sale?
A short sale can be a great opportunity to get a home at a discounted price, but it can also have drawbacks. Buying a short sale is a more complex process than selling a typical home, so investing in these types of investment properties comes with some unique risks.
Why are lenders only interested in short sales?
The lender may charge a higher price if he thinks he will get more money from the sale. Lenders generally only accept short sales if the house is worth the short sale price, that is, the market value. The mortgage company will likely pay the transaction costs if it agrees to sell short.
What's the difference between short sales and foreclosure?
Less competition. Short sales take a long time and many buyers don't want to wait. This means you are less likely to get caught up in a trade war that could drive prices up, especially in a hot market. It can be less risky than buying a foreclosure.
What is a short sale on a house and how does it work
The term "short sale of real estate" refers to a sale that occurs when a homeowner in financial distress sells their property for less than the amount owed on the mortgage. The buyer of the property is a third party (not the bank) and all proceeds from the sale go to the lender.
What are the drawbacks of short sales in real estate?
Another risk of a short position is the loss of property by a cash buyer or a buyer who can make a large down payment. By accepting short sales, banks and other lenders prefer to deal with these buyers. They see them as less risky than buyers who have to take out large mortgages to buy real estate.
How does a short sale work in real estate?
This is how short selling works. A short sale works like a normal home sale, where the seller contacts the real estate agent to list their home for sale. The seller informs the broker that it is a short sale and then waits for an offer from the buyer.
What are the disadvantages of buying a short sale home?
The biggest drawback for a buyer is time. A short sale takes much longer than a traditional home sale because the seller's mortgage lender has to give the seller the green light. This process becomes even longer when it comes to multiple mortgages and guarantees.
What are the cons to buying a short sale?
Disadvantages of short selling: Bank approval can take months and ultimately fail.
What is a short sale on a house mean for the buyer
If you are a buyer, the short sale allows you to buy a home at a discount because the seller is in trouble and you have fewer options. However, you must be patient as buying a property as a short sale can take some time. Let's take a closer look at how short selling works for both sellers and buyers. How does short selling work for sellers?
A short sale is a sale of shares that the investor believes will decrease in value in the future. To get a short sale, a trader borrows shares on margin for a period of time and sells them when the price is reached or expires.
What to expect at a short sale?
What to expect from a short sale when negotiating a price. When you find a house you like and it's for sale, do that first. Buy AsI. When buying a property in a normal sale, the buyer has the right to visualization. Any repair. Taxes and Duties.
What are the stages of a short sale?
While many short sales are different, there are three basic steps to any short sale. This is the document gathering phase, the negotiation phase and the closing phase. The stage of collecting documents. At this stage, the lender or service provider assesses whether the borrower should be considered for a short sale.
What are the benefits of a short sale?
The main advantage of being short is that you may be able to get out of your mortgage without being responsible for the shortfall. However, for this to work, you must live in a state that doesn't allow depreciation after a short sale or force the lender to waive depreciation.
How do you start the short sale process?
The short selling process for sellers can be broken down into five simple steps: Determine the current situation. Evidence of obvious financial problems. Use a qualified agent. Gather the relevant documents. They continue to sell the house.
What are the disadvantages of short selling?
Disadvantages of Short Sale Commissions for Short Sale Shares. Most brokers offer short sale options. Interest margin. Most, but not all, brokers charge typical margin rates for short positions (see below). Loan or Capital Loan Commissions. Short sale dividends. The opportunity cost of short selling stocks.
What is a short sale mean when buying a home?
A short sale is a home that can be purchased for less than the current owner's debt. The transaction benefits the bank as it avoids the costly and time-consuming repossession of the alienated property.