Short sale

A short sale is a real estate transaction in which the proceeds from selling the property fall short of the balance owed on the home's mortgage. Homeowners may choose this option when they are underwater on their mortgage and it can provide numerous benefits.

1. Avoid foreclosure: A short sale allows homeowners to avoid foreclosure, which can have long-lasting negative effects on their credit score and future ability to secure loans.

2. Control over the process: Unlike a foreclosure, a short sale provides homeowners with more control over the process, allowing them to actively participate in negotiating terms and conditions with the lender and potential buyers.

3. Faster recovery time: Homeowners who complete a short sale typically experience a quicker financial recovery than those who go through foreclosure, as their credit scores suffer less damage.

4. Reduced debt: Lenders often agree to forgive some or all of the outstanding mortgage debt in a short sale, alleviating the homeowner's burden.

5. Lower fees: Short sales are generally less costly compared to foreclosures, where the homeowner may be responsible for legal fees and other expenses.

6. Flexibility in finding a new home: A short sale can provide homeowners with more time to find a new place to live, making the transition to their new situation smoother.

7. Preservation of dignity: Conducting a short sale helps homeowners maintain their privacy and dignity, as there is less public exposure compared to a foreclosure.

8. Buyer appeal: Short sale properties can make for attractive deals, since they are often priced below market value. This increases chances of a faster sale.

9. Better neighborhood stability: Short sales help maintain the stability of neighborhoods by reducing the number of vacant homes, which can negatively impact property values and contribute to the deterioration of the neighborhood.

10. Support from a real estate professional: Engaging a real estate agent with expertise in short sales will provide homeowners with invaluable support and guidance throughout the process. This can help make the experience less stressful and more successful.

As professional real estate agents we provide the distressed property owner with key information that will help bring them out of a financial crisis.

We believe all homeowners should have a positive and engaging plan for the solution to their problem.

HOW DO SHORT SALES WORK?

A homeowner who is in foreclosure, would work with a licensed real estate agent who is

proficient in working through the short sale process. Successfully completing a short sale

involves, gathering the required documentation from the homeowner, obtaining the correct

authorization from the homeowner’s lender; and the lender’s attorneys to stop the

foreclosure process, and working with the home owner to place the property on the active

market for sale. The process also involves securing a qualified buyer to purchase the home,

negotiating an offer obtained from the buyer with the homeowner’s lender/or lender(s),

with the intent to get the lien holder to release their lien on the real estate. 

Ideally the lender would accept the lesser amount of the balance of the mortgage without penalty to

the homeowner, resulting in the sale of the property and the homeowner transitioning into

new living arrangements.

Contact us today so we may create a plan to assist.