MORE INFORMATION ABOUT 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 in a 'short' equity position 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:
- The lender will want to see that you do not have enough money that would allow you to pay the difference on your mortgage.
- 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.
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 possible options and, when possible, assist in the quick execution of a short sale transaction if that is the best option. Often short sales can be completed at no charge to the homeowner. If you have questions or feel you may qualify for a short sale, please contact me for a free consultation. Yet in cases where an owner wants to stay in the home, loan modification or refinance are often better alternatives.
From CDPE.com