A short sale can be a great solution for homeowners who need to sell, but who owe more on their homes than they are worth in today's market. 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 current administration have also improved the chances of getting a short sale approved. - 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.
In order for a homeowner 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. Every situation is different, but a few examples of a hardship would include:
- Unemployment or loss of primary income source
- inability to work due to a health crisis
- job relocation
- failure of your business
- bankruptcy
- death of your spouse
- divorce or separation
- Monthly Income Shortfall – In other words: You simply don't have the money to keep paying the mortgage and keep up with your oher necessary bills. 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 both the CDPE® Designation as well as the Short Sale Foreclosure Resource Designation and I am ready to identify all of your 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. IMPORTANT NOTICE: RE/MAX Premier Realty, Inc.is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit rating. It is strongly recommended that you seek appropriate professional councel concerning your rights as a homeowner.
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