A Short Sale can be an excellent solution for homeowners who need to sell, and who owe more on their homes than whats it 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 other lenders have become more negotiable when it comes to these transactions. Recent changes in corperate policy and the Obama administration have also improved the chances of getting a short sale approved.
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 homeowners 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 'sold short' of the total value of the mortgage.
For homeowners to quality for a short sale, they must fall into or all of the following circumstances.
* Financial Hardship- There is a situation causing you to have trouble affording your mortgage
* Monthy Income Shortfall- You have more money than month. A lender will want to see that you cannot aford, 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 Agents. If you feel a shortsale is right for you please call me for a free consultation.
1. Don't ignore the problem
2. Contact your lender as soon as you realize you have a problem
3. Know your mortgage rights
4. Understand foreclosure prevention options
5. Open and respond all mail from your lender
6. Contact your HUD-approved housing counselor
7. Prioritize your spending
8. Use your assets
9. Avoid "LOAN MODIFICATION" companies
10. Dont lose your house to FORECLOSURE SCAMS.
