Understanding short sales

Short Sale, What is it?

 

If one is having difficulties paying their mortgage, there is an alternative to a foreclosure; it is called a short sale. Banks really don’t want to take your house away; it’s their last resort in order to acquire some of their money back that was loaned out. More and more banks are becoming at ease with accepting short sales and making the process easier to originate and conclude.

A short sale is when the seller's mortgage lender will accept less than the mortgage balance in order to release an existing mortgage, therefore is alleviating the owner of the stressful and taxing process of a foreclosure proceeding.  Whether you are selling or buying a property listed as a short sale an experienced realtor will be able to help you expedite the transaction much faster than if you go it alone. There is much paperwork that your lender will require you to furnish and fill out before they accept your property as a short sale. Any important detail missed could only delay your transaction. A realtor will be the liaison between you and the bank though this process and will help the process go smoothly and quickly.

Another imperative thought to be aware of is because a property is listed as a short sale that does not always mean that your bank will accept any offer than comes along. This depends on scores of factors and other negotiated terms, but the good new is the lender ultimately wants to sell the home instead of it going into foreclosure so they are more apt to work with you than against you.

If you find yourself in a situation that may call for a short sale of course, a better solution would be to find a way to save your home by first, asking the lender to modify the loan, or to skip a couple of payments to help you get back on track financially. It never hurts to ask, however if that can’t be accomadated know that the short sale process may be available to you in order to avoid a foreclosure which will be posted on your credit report for many years to come.

 

 

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