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What Is A Short Sale Foreclosure on a home has consequences for the family, the community the real estate market and the economy. The option for a short sale provides a path for troubled homeowners to avoid foreclosure and many of the drastic penalties in entails. A short sale is an agreement in which your mortgage lender agrees to accept a payoff on the loan for less than the balance due. Many lenders agree to a short sale because they receive more of the loan balance in comparison to the amount they would gain from selling the property following a foreclosure. This also aids in protecting home values in the community the property is located in and helps the homeowner maintain a better level of credit compared to a foreclosure. Homeowners considering a short sale must meet a specific set of criteria to qualify: you must be behind in your mortgage payments, provide evidence of economic hardship, and have little or no equity in the property. The short sale is not an ordinary real estate transaction. Most real estate transactions involve a seller and their real estate professional, the buyer and their lender, and their real estate professional. In a short sale situation, all of those parties in addition to the seller’s loan servicer, a housing counselor any junior lien holders, mortgage investors, and insurers may be involved also. With so many more parties involved in a short sale, it can be difficult to complete without a qualified REALTOR© to help guide you and act as a liaison between all of the parties involved. You will want the advice and expertise of a Realtor who has your best interest in mind and will expedite the short sale transaction. It is essential to have a Realtor who won’t allow you to miss a detail that could delay closing the transaction in a timely manner and to the specifics required by all parties involved. A qualified Realtor trained in short sales and certified as a Distressed Property Expert (CDPE) will also be much more able to find a buyer to complete the transactions and may increase your chances of getting to closing by many times over. Knowing what to do and who to talk to is key. Homeowners agreeing to a short sale should also consult a tax expert and obtain the services of an attorney to help protect themselves from any future claims by the lender. |
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