SHORT SALE HELP IS HERE!!

Click here for area Short Sales($225,000 to $450,000) 

  Click here for area Short Sales($450,000 +) 

What is a Short Sale?

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 '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.

For homeowners to qualify for a short sale, they must fall into all of the following circumstances:

  • Financial Hardship – 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.
  • 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.

Heard horror stories about applying for a short sale?  View the 7 Myths Below!!

1) SHORT SALES ARE IMPOSSIBLE AND NEVER GET APPROVED
Nothing could be further from the truth! While there are no guarantees in any transaction, more and more short sales are being approved monthly.

2) BANKS ARE NOT ACCEPTING SHORT SALES; THEY ARE WAITING ON A BAILOUT
Many have heard this, but the reality is that banks (and the government) are trying to do anything they can, within reason, to avoid foreclosing on property.

3) YOU MUST BE BEHIND ON YOUR MORTGAGE IN ORDER TO NEGOTIATE A SHORT SALE
While it is true that initially some lenders wanted you to be in default before they were willing to consider a short sale, this trend has almost all together reversed. Today lenders are looking for verifiable hardship, monthly cash flow shortfall or pending shortfall and insolvency.

4) BUYERS ARE NOT INTERESTED IN SHORT SALES AND AVOID THEM
Short Sales and Foreclosures have become synonymous –not with issues—but with GOOD DEALS.

5) LISTING AS A SHORT SALE IS AN EMBARRASSMENT TO THE SELLER
With 40 to 60% of the sales in the US predicted to be Short Sales or foreclosures, homeowners are not alone

6) THE BANK WOULD RATHER FORECLOSE THAN BOTHER WITH A SHORT SALE

The reality is that banks do not want to foreclose on property. Short Sales make financial sense to lenders.

 7) THERE IS NOT ENOUGH TIME TO NEGOTIATE A SHORT SALE BEFORE FORECLOSURE
The foreclosing party can stall a foreclosure up to the final day of the process. These days many lenders will stall with as little as a phone call from homeowners letting them know that they are trying to sell.