SHORT SALES EXPLAINED

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 (Certified Distressed Property Expert) and are certified by the Nationa Association of Realtors (NAR) as a Short Sale Foreclosure Resource (SFR). 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. This service may possibly not cost you a penny.

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

Have you heard about HAFA? Watch this video and give us a call to see if you qualify!

 

 

This information is being provided to try and help educate individuals who may be experiencing a possible foreclosure or potential foreclosure proceeding. Of course you should always seek advice from an attorney when able to do so. In the event you can't make your mortgage payment, or you suffer a hardship, contact your lender, bank, or Mortgage Company right away. Try and prevent this process from happening to you if possible. There are usually other options available if you take action in a timely manner. Don't wait until you are behind in your payments, or your home is in default to seek council or get advice from a real estate professional or real estate attorney. Sometimes just knowing the right thing to do, or who to call can make the difference between keeping and losing your home in foreclosure.