What are Short Sales?

If you are looking to buy real estate or a homeowner in risk of foreclosure, no doubt you have come across the words “Short Sale.” A short sale is when a lender agrees to accept less money than the amount of the current homeowners’ loan to settle the debt. There are generally two reasons why a lender will accept the Short Sale of a property. The first reason is the person holding the loan is in a hardship and looking to sell the property. Examples of what constitutes a hardship is; loss of employment, divorce, medical emergency, bankruptcy, death or employment transfer out of the area. Another reason a lender may accept a short sale of a property is when the owner of the property owes more on the loan than the property is worth according to the current market.

Selling your property as a Short Sale:

There is a complex process involved in getting a lender to approve a short sale of a property. Involving a Realtor who is knowledgeable of the process is absolutely necessary to ensure everything goes as smoothly as possible with no errors that can risk the approval of the short sale. If you are in risk of foreclosure due to hardship or owe more on your property than it is worth, we are ready to assist you with the possibility of short selling your property. We will walk you through the process and assist you in the steps to help get approval from your lender and sell your home before the major consequences of a foreclosure effect you.

Buying a Short Sale:

Many people looking for real estate often check out foreclosures and short sales to get a deal on their major purchase. Before you decide to purchase a short sale, you will need to understand that a short sale can take several months to close if your offer is accepted, rather than the normal 30 days, and even if a home is listed on short sale terms, the lender may not accept your offer. It is very important that you get a real estate agent involved with experience in short sales to protect your interests and help get the purchase closed.