Short Sales
What is a short sale?To sum it up, a short sale is when the proceeds from the sale of your home fall short of what is owed to the bank. The bank must agree to take less than the actually amount due.
For example, if you owe $100k and you accept an offer of $95K, after all the expenses are paid (transfer tax, title, commissions) your left with approximately $85k. That amount is not sufficient enough to pay the $100K back to the bank and you do not have the $15K to come up with at closing, therefore it then becomes a shortsale that the bank must agree to accept.
How do you know if you qualify for a short sale?
Ultimately, this is the bank's decision. Sometimes it is good to contact your lender and speak to them about a short sale to see if that is a possible option for you. Most banks will not consider a short sale without an offer to purchase on your home, along with many documents they will need from the homeowner.
It is VERY important that you speak with an attorney, an accountant, and a real estate agent to make sure this is the route that works best for you!
How do you list a short sale?
This process works the same as listing your home normally. The only stipulation is that you must specify in the listing that your home be subject to your lenders approval of the short sale.
How long does a short sale take?
This process is dependant on your current lenders short sale process. It could potentially take anywhere from 30-120 days to get approval from your lender.
There are many people that are upside in their homes right now because of the current market situation. It is not uncommon to be in this position. Short sales are just another option to help people in this situation. To find out if this is an option that would work for you, please do not hesitate to contact me.
We are currently working with Attorneys who will handle your short sale with NO COST to you!! Feel more secure about your decision. We are here to help YOU!
