What is a Short Sale?
A Short Sale is when the amount realized from the sale of a property is less (short) than the amount owed including outstanding liens, such as property taxes and home owners association dues and closing costs.
Benefits of a Short Sale
A Short Sale can be one of the best options for many homeowners behind on their mortgage and or facing foreclosure. The Short Sale process allows the homeowner to sell the property for less than owed and remove the secured debt associated with the home. Through the Short Sale the seller can close the sale and walk away from the property with significantly less damage than a foreclosure. A homeowner who decides to Short Sale their property typically experiences less impact to his/her credit. There are no out of pocket, up-front fees or costs associated with the Short Sale. Your lender pays for all fees including closing costs, escrow fees and realtor commissions. A Short Sale is typically the best course of action for homeowners with no equity that are delinquent on their monthly payments or in default on their loan. A Short Sale provides struggling homeowners with an opportunity to get a fresh start and wipe the slate clean.
How Do I Qualify For A Short Sale?
A homeowner looking at the option of a Short Sale must be able to show the lender that they have a "hardship" and as a result are unable or will not be able to continue making the payments on their mortgage. A hardship situation is one that is the result of circumstances that forced the borrower into a position where they can no longer afford their mortgage payments. While every situation is unique and must be evaluated individually, some common examples of hardship include:
A lender will consider additional factors to approve a Short Sale. Additional questions to ask yourself if you have a hardship situation;
If you answered yes, to any of these questions, you will likely be able to prove a financial hardship and qualify for a Short Sale.
Next Step in the Short Sale Process
Please contact me for more information or with any questions.
Time is of essence. The sooner you begin the process,
the greater the chances of a successful resolution.