What is a short sale?

What is a Short Sale?


The technical, official definition of short sale:

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.

A short sale can be an excellent solution for homeowners who need to sell, who owe more on their homes than they are worth and want to avoid foreclosure. In the past, it was much harder to get a short sale to go through.Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. By hiring a Realtor with a CDPE designation a homeowner will have a greater opportunity to have the short sale negotiated on their behalf.

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


1. Financial Hardship - There is a situation causing you to have trouble affording your mortgage.

2. 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.

3. Insolvency - The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.

Today home owners have options, solutions that weren't available before. With the right guidance and education there is Realtors able to help you get through these hard times. For furthure assistance please visit www/SCVDistressedPropertyExpert.com