Short Sale Solutions

Short Sale Explained

A short sale can be an excellent solution for homeowners who need to sell, and who owe more on their homes than they are worth. In the past, it was rare for a bank or a lender to accept a short sale. Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in corporate policy and the Obama Administration has also improved the chances of getting a short sale approved.

But to be technical, here's a more official definition:

A homeowner is 'short' when the amount owed on his/her property is higher than the current market value.

A short sale occurs when a negotiation is entered into with the homeowner's mortgage companyn (or companies) to accept more than full balance of the loan at closing. A buyer closes on the property, and the property is then 'sold short' of the total value of the mortgage.

For homeowners to qualify for a short sale, they must fall into any or all of the following circumstances:

Financing Hardship- There is a situation causing you to have trouble affording your mortgage.
Monthly Income Shortfall- In other words: "You have more month than money." A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
Insolvency- The lender will want to see that you do not have significant liquid assets that will allow you to pay down your mortgage.

This seems simple enough, but it is a complicated process that takes expertise from experienced professionals. We are ready to identify all possible options and, when possible assist in quick executions in a short sale transactions.

If you have questions or feel you may qualify for a short sale, please contact us for a free consultation.