What is a Short Sale?

A short sale can be an excellent solution for homeowners who need to sell, and who owe more on their homes than they are worth.

 

In the past, it was rare for a bank or lender to accept a short sale.

 

Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Believe it or not. Your lender doesn't want your home. It cost more for them to take back your home then for you to keep it or short sale it.

 

Recent changes under President Obama's administration have improved the chances of getting a short sale approved.






 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

So what is a Short Sale? Here's a more official definition:
  • A homeowner is 'short' when the amount owed on his/her property is higher than current market value.
  • A short sale occurs when a negotiation is entered into with the homeowner's mortgage company (or companies) to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is then 'sold short' of the total value of the mortgage.

For homeowners to qualify for a short sale, they can fall into any or all of the following circumstances:

  • Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
  • Monthly Income Shortfall – In other words: "You have more month than money." A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
  • Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.

To see if you qualify for a short sale and the reason is not stated above, please contact your mortgage lender.

 

This seems simple enough right, but it is a complicated process that takes the expertise of experienced real estate professional. I hold several different designation pertaining to Short Sales therefore, am ready to identify all possible options and, when possible, assist in the quick execution of a short sale transaction.

 

If you have questions or feel you may need to perform for a short sale, please contact me for a free consultation.

 

Understanding your options could mean all the difference in the world.

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