WHAT IS A SHORT SALE?

A few years ago you would never have heard the term Short Sale. Now it is as common as New Listing. A short sale means that in order to sell a specific home the bank that has a mortgage on the home has to agree to take less then what is owned on that home. For example, A couple bought a home in 2005 for $225,0000.They financed $218,000. Now because of job loss in the family they can no longer afford the mortgage payments. The home owner needs to sell the home but, because of the economy the value of that home dropped to $175,000. So the only way it will work is for the mortgage company to take far less then they are owed. If they will not do that then the home owner has no choice but to let the home go back to the mortgage company in the form of forclosure. Because it is very costly for the mortgage company to go thru foreclosure they are far ahead to take less now then get it back. I have become a Certified Short Sale specialist and would be happy to meet with someone you know that is in this situation. A home owner is MUCH better off to go thru the short sale process then to let their home go thru Forclosure. Call me and I’ll show you why.
 

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. Recent changes in corporate policy and the Obama administration have also improved the chances of getting a short sale approved.
 

But to be technical, 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 must 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.

This seems simple enough, but it is a complicated process that takes the expertise of experienced professionals. We hold the CDPE® Designation and we are 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 qualify for a short sale, please contact us for a free consultation.

Understanding your options now could mean all the difference in the world. Contact us today.

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