Short Sale Explanation

Short Sales Explanation view more info & other blogs: www.DistressedPortlandHomes.com

The Term Short Sale is relatively new in the eye of the public, and with most things that are unfamiliar there is some confusion. I would

like to explain with a little bit of clarity. There are several terms that are being throw about with reckless abandon largely unknown to the general public; Short Sale, Foreclosure, Pre-foreclosure, Bank Owned & REO. You can read about the others mentioned

This particular blog we'll focus on Short Sales.

First of all, what is a short sale? A short sale is a situation in which in order to sell your house the current market value is not high enough to cover the full payment of the mortgage or other liens on your property. For example you need to sell the house, you have it listed for $280,000 the only offers you receive are for $260,000. Minus the 6% for broker fees the 800-1200 for title insurance (you have to provide the buyer with fully equitable title, oh...that and you don't want to be sued later) that leaves you roughly $243,000 whoops! You need $260,000 just to pay your mortgage. It's time for a short sale.

Why would I get a shortsale? Imagine that you have to sell, can't afford the mortgage payments, you've been in an accident, you need to move out of state because you have a crazy ex girlfriend (is that just me?), in any case you have to sell your home. You can't afford to move, you can't afford the payments, you want to avoid foreclosure. There are many instances for the why, and usually they vary from case to case,

How would I get a Short sale? Well this is something that the bank you have chosen to purchase your house with will decide. Most typically you will need to first have your home on market, get the short sale packet from your bank. They will ask you for a thorough picture of what you are getting a short sale for, hard ship letter, bank statements, tax returns (not every short sale request is approved unfortunately) ect. You will then need to have an offer from the bank (this is not always the case but it makes the process SO much easier) when you have the offer from the bank you will submit it with your short sale packet and wait. It is vitally important that you follow up with whomever is handling the file. You should also keep in mind that it may take days if not weeks for them to actually assign a person to you and your file.

Time Lines:

Depending on the bank and their overall process you can expect start to finish anywhere from 90-180 days so the more of the leg work and paper work you can have ready and waiting the better.

Overall Process:

1. Get a short sale packet from your bank(s) that you have your mortgage(s) from

2. Have your home on market price it to get an offer in the door

3. Submit your packet and offer to the appropriate office of the bank

4. Follow up! Follow up! But above all make sure you follow up. (There are thousands of short sales out there, and the squeaky wheel gets the grease)

5. Close on your home and move on with your life, your credit will not be perfect but it's MUCH better then foreclosure.

Realistically you should have a real estate professional involved, the process is just that, a process.

Please feel free to E-mail me with any questions you might have.

Thanks for reading; and please visit my website: www.DistressedPortlandHomes.com

Jason H. Gomes

Prudential NW Properties

1925 NW Amberglen Parkway Suite #100

Beaverton OR 97006

cell: 503.608.8785