Short Sales Explained

Short Sales Explained

Short Sales can be a great answer for the homeowner that needs to sell but owes more on their home than it is worth. In the past, it was not common that a bank or lender would accept a short sale but in today’s market they have become much more negotiable. Overwhelming market changes, changes in the corporate policy and the Obama administration have contributed to the chances of getting a short sale approved.

Here’s the 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 : 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. I am ready to help you with all possible options and assist you in the quick execution of a short sale transaction. If you have questions or feel you may qualify for a short sale, please contact me for a free consultation. Understanding your options now could mean all the difference in the world.