In real estate, the term "short sale" means selling a property for less than the outstanding mortgage owed. Participating in a short sale is an option available to homeowners in order to prevent or halt foreclosure proceedings, and reduce or eliminate mortgage debt. Here is an example:
Homeowner H needs to
sell their home, which has an outstanding mortgage of $250,000, but the current
market value, is only $210,000. Since the current market value is $40,000 less
than the balance due on the mortgage, Homeowner H's lender would need to agree
to take a "short" payoff in order to sell the home.
Reasons To Do A Short Sale
- Ineligible to refinance or modify the mortgage
- Facing a long-term hardship
- Medical hardship
- Financial hardship
- Loss of income or unemployment
- Divorce or death of income earner
- Behind on mortgage payments
- Owe more than the property is currently worth
- Not able to sell at a price that covers what you owe
- Can't afford to maintain the property and need to sell
How Does A Short Sale Work
- Contact the lender(s) to request a short sale package.
- Contact a Realtor® to list the property & find a buyer.
- Gather the financial documents needed for the lender(s).
- Prepare a hardship letter explaining the need to sell.
- Submit the complete short sale package to the lender(s).
- Review offers presented by the Realtor® / Accept an offer.
- Have Realtor® submit the offer to the lender for review.
- Have Realtor® negotiate the terms of the offer and any costs associated with the sale of the property with the lender(s).
- Agree to the lenders terms of the short sale approval
- Prepare the property for closing
Benefits Of A Short Sale
- Eliminate or reduce the mortgage debt
- Homeowners can prevent or halt foreclosure proceedings by participating in a short sale.
- Homeowners can to stay in the home until the sale is completed
- Homeowners may be eligible for relocation assistance funds of up to $5,000
- Less impact on homeowners credit report than foreclosure
If you're facing a hardship and need to sell your home, now is the time to consider a short sale. I've helped many homeowners successfully negotiate and close their short sale transactions; I'd like to help you too!
Click Image To Enhance
Click Image To Enhance
