Posted over 13 years ago

Short Sales-What is a Short Sale?-Munson Montejano Real Estate

Short Sales-What is a Short Sale?-Munson Montejano Real Estate-Ashort sale can be a good solution for homeowners who need to sell, but owe more on their mortgage than the home is worth. In the past, it was rare for a bank or lender to accept a short sale. Now, however, due to overwhelming changes in the market, banks and lenders have become much more flexible when it comes to approving short sales.

Recent changes in many corporate policies and the Obama administration have also greatly improved the chances of getting many short sales approved.

To be clear, here is a more technical definition of a short sale: When a seller must sell their home for less than they owe on the property, and the lender that they owe the money to agrees to take less than they originally loaned to the seller, that is a short sale. The "short" of the sale is the difference between what the property can be sold for now minus the loan balance.

Example: Home owner owes $400K on loan for their home, but the home is only worth $300K. The "short" of the sale would be $100K Plus Expenses that the Lender would have to take a loss on.

What qualifies a seller for a short sale?

Here are just a few examples of Hardships that may qualify a seller for a short sale.

Loss of Job
Becoming disabled
Divorce
Death of a spouse

If you are considering a Home Short Sale you will need a team of highly specialized professionals to help you understand your options and home foreclosure alternatives.

Learn More about:

Marketing Short Sales-Finding A Buyer

Short Sale Agents-How to find a short sale specialist

Short sale hardship-What qualifies as short sale hardship

Does A Short Sale Stop Foreclosure

Short Sale Vs. Foreclosure-Short Sales Affect On Credit

What is a short sale

Loan Modification Hardship

Qualifying for a loan modification-California Loan Modification

Home Foreclosure Alternatives

Lender Loan Modification Scams

Lender Loan Modifications

What Is HAFA-Home Avordable Foreclosure Alternatives program

Short Sales-What is a Short Sale?-Munson Montejano Real Estate

Comments