What is a Short Sale?
A short sale is when a mortgage lender agrees to accept less than the balance owed during the sale of a home. Extenuating circumstances influences whether or not banks will discount a loan balance. These circumstances are usually related to the current real estate market and the borrower's financial situation.
The short sale process typically is executed to prevent a home foreclosure, but the decision to proceed with a short sale is determined by the most economic way for the bank to recover what is owed on the loan. Often a bank will allow a short sale if they believe that it will result in a smaller financial loss than with foreclosure.
In order for a short sale to be started, the homeowner must prove a hardship situation to the lender is writing. Other things that the lender will require include: 2 years of tax returns, a detailed financial worksheet, bank statements, pay stubs and a few more items documenting a sellers assets or in many cases-no assets. We are always more than happy to help you complile this information so that we may submitt a complete package to your bank.
While short sales negatively affect a person's credit report, the impact is typically less than foreclosure; short sales are considered a type of settlement. Like all credit report entries except for bankruptcy, short sales can remain on a credit report for up to seven years. The positive news is that the opportunjity to obtain a new loan in the future occurs within a shorter time period than with a traditional foreclosure.
An experienced REALTOR (R), such as myself, can help protect your interests, guide you through each step, check important details, and provide sound advice. We have a full time staff dedicated to negotiating short sales! We are never to busy to answer our phone and answer your questions!
THERE IS NO COST TO YOU when selling your property as a short sale!
While this is simplified explanation of a short sale, the process is much more complicated. Your next step would be to call so we can evaluate your property and specific situation to ensure this is the right direction for you.
Call us today at 619-253-3205 and let us show you what we can do to help today! We guarantee that you won't regret this phone call.
"Put our team of experienced Short Sale negotiators to work for you today!"
