Short Sales Explained
Click on the graphic below to get your Free copy of "Understanding Short Sales".
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. I hold the CDPE® Designation and 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 qualify for a short sale, please
contact me for a free consultation.
Understanding your options now could mean all the difference in the
world.