Short Sales Explained

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 any or 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. I hold the CDPE® Designation and am ready to identify all 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.

Short Sale Programs

Contact us for an understanding of the many options for Short Sales and which one are options for you and which ones may in fact add more problems for you later after the sale is completed.

• Home Affordable Foreclosure Alternatives (HAFA)
• Fannie Mae & Freddie Mac HAFA Short Sales
• FHA Pre-Foreclosure Short Sale (PFS)
• VA Compromise Sale (VA loan Short Sales)
• Bank of Americal Cooperative Short Sale
• Wells Fargo HAFA Alternative Program
• Short Sale Implications with local credit unions

On our FREE consultation call we will also discuss . . . 

• What happens to the unpaid balance after a short sale (the deficiency).
• Explain why we suggest all home owners speak with the proper people prior to starting a short sale of ther own.
• Managing a potential foreclosure sale while attempting to short sale your home.
• Timing your short sale if you beleive you will also be filing bankruptcy.
• Should you move out or stay in your home?
• And so much more that you don't even know to ask yet.