What You Need to Know about Short Sales

What You Need to Know about Short Sales

What is a short sale?

When the debt (mortgage) on a property is higher than the current market value the property is "under water"

That is not the problem here because the market will eventual correct itself and values will increase again. However, it becomes a problem when property owners no longer can afford to make payments on the debt owed. These distressed owners need to turn to a person who has expertise in distressed real estate, wether it be a short sale specialist or a real estate attorney who has expertise in this area.

A short sale occurs when you and your agent enter into negotiation with your mortgage company or servicer to accept the price offered on your property and if they accept less than the full balance of your debt (loan) at closing. When a buyer closes the property is "sold short."

I can't make my mortgage payments anymore. What can I do?

Take action! Don't put unopened mail from your creditors in boxes or drawers but take action.

Contact a REALTOR® who has experience in marketing and closing short sales such as a CDPE.

Interview the agent(s)

You want to know how many short sales they have listed, lost to the bank, or closed. Be informed and ask a lot of questions. The real estate agent will have to ask you a lot of questions too in order to prepare a complete short sale packet to present to the servicer or mortgage company. Be honest and don't hold back information. Rememberthe agent you select will be on the same team as you.