What is a short sale?

Imagine you own a house, but you owe more money on your mortgage than the house is currently worth. In this situation, selling the house for its total value won’t be enough to pay off the mortgage. A short sale is a solution that allows you to sell the house for less than what you owe on the mortgage.

Here’s how it works: We will talk to your mortgage lender and explain your financial difficulties. With their approval, we can list your house for sale at its current market value, which is typically lower than what you owe. When we find a buyer, and the offer is approved by your lender we will submit the required documentation.

Now, here’s where it gets a bit different: Instead of receiving the full amount from the sale, the lender agrees to accept the proceeds as payment for the mortgage, even if it doesn’t cover the full amount owed. This means you’re released from the remaining balance on the mortgage, and the lender considers the debt resolved.

While a short sale can help you avoid foreclosure and settle your debt, it’s important to remember that it can still have some impact on your credit score. However, it’s generally considered less damaging than going through foreclosure. Each situation is unique, so it’s a good idea to seek advice from professionals, such as a Realtor, like me, who specializes in short sales.

Overview of the process

How I can help you

Hire a Short Sale Realtor

To effectively navigate a short sale, your lender will expect you to engage the services of a qualified Realtor (such as myself) who specializes in this field. As an experienced professional in short sale transactions, I have a comprehensive understanding of the process and the necessary steps to get approval for short sales.

Submit a short sale package

Once you have had your initial consultation with me, I will take care of submitting all the necessary documents on your behalf. Rest assured that I will gather all the required information to enable the lender to review your short sale.

Negotiate with your lender

As an experienced negotiator, I will work diligently to reach a settlement and cover all expenses associated with your debt as well as trying to get you relocation assistance.

Rest assured that I will act as your advocate throughout the process, prioritizing your interests in securing the lender’s agreement.

Weekly communication

Throughout the entire short sale process, you will be kept well-informed about each step. I understand the potential frustrations that may arise during this process, which is why I have implemented efficient systems to ensure that you are always aware of the progress and updates regarding your property.

Benefits of doing a short sale

Avoiding foreclosure

One of the primary benefits of a short sale is that it allows homeowners to avoid foreclosure. Foreclosure can have severe consequences on credit scores and make it challenging to secure future loans or obtain favorable terms on credit. Opting for a short sale can help homeowners mitigate the negative impact of foreclosure.

Relocation Assistance

Some lenders will provide you with relocation assistance. The assistance can include reimbursement for expenses such as moving costs, temporary lodging, and storage of household goods.

Control over the sale process

Unlike foreclosure, which is typically initiated by the lender as your short sale advocate my team and I will have control over the selling process.

Earlier home-buying eligibility

By opting for a short sale, homeowners may be eligible to purchase a new home sooner than if they went through foreclosure. The waiting period to qualify for a new mortgage after a short sale is typically shorter compared to a foreclosure.

Debt resolution

By going through a short sale, homeowners have an opportunity to resolve their mortgage debt. If the lender agrees to accept the proceeds from the sale as payment in full, it can release the homeowner from the remaining balance on the mortgage. This can relieve the financial burden and provide a fresh start.

Reduce impact on credit score

Although a short sale can still impact a homeowner’s credit score, it is generally less damaging compared to a foreclosure. While credit scores will likely be negatively affected, the impact can be less severe and may allow for quicker credit score recovery.

Are you looking for an attorney?

We will make sure to get you the best legal assistance you can receive. Our attorneys have succesfully helped homeowners just like you.

    Find out if your property qualifies for a short sale

    Financial Hardship

    You must demonstrate a genuine financial hardship that makes it difficult or impossible for you to continue making mortgage payments. Examples of financial hardships include loss of income, job loss, divorce, medical expenses, or a significant increase in monthly mortgage payments.

    Insufficient Equity

    Your property’s market value must be lower than the outstanding mortgage balance, meaning you owe more on the property than it is worth.

    30+ Days delinquent

    Depending on the lender there may be an exception on the 30 day delinquency. You may be able to start the short sale process even if you’re not 30 days delinquent.

    Inability to pay mortgage

    You must provide evidence that you are unable to meet your mortgage obligations and have exhausted other options for resolving your financial difficulties, such as loan modifications or refinancing.

    No Equity Sources

    You should not have significant assets or alternative sources of funds that could be used to resolve the mortgage debt. Lenders generally expect you to tap into your savings or sell other assets before considering a short sale.

    If you do not meet the requirements for a property short sale, there might be alternative options to a short sale to prevent a foreclosure

    If you have additional questions, schedule a free no obligation consultation HERE.

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