SHORT SALE! Owner owes 3M on his 2M house!

[Kenneth McKeown]

Hey all! 

I just got a very warm lead that is in quite the predicament. I'm very familiar with every aspect of real estate - except short sales. I have someone that currently owes 3M on a house that can only be sold for about 2M.

What are my options here? Are are HIS options here? Any help or guidance would be great!

[Alexis Adams]

With a short sale, the basic explanation of the process is that the homeowner contacts their lender and the lender reviews the homeowner’s specific situation (financials, hardship and reason they are seeking to sell the property, etc.). The overall goal is to have the lender approve to sell the property for less than what is owed so the homeowner can walk away not owing anything and can avoid foreclosure. 

The lender will also confirm the fair market value and look to have an offer that is in line with the value.

It’ll come down to the lender’s guidelines and what the homeowner’s situation is.. that will really determine whether or not they will qualify for assistance.