Short Sales
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Foreclosure or Bankruptcy is NOT the only answer! We can help!
Yesterday, life was good. You were meeting your mortgage, had money for groceries and the kids were happy. Today is different. Know you are not alone! This may not seem to helpful, but you are not alone. The economy has forced many families to review their financial situation and make adjustments. Throw in any additional roadblocks (loss of job, illness, other hardships) and now you are overwhelmed. Television and radio commercials tend to push bankruptcy as your only option. It's not the only option. Even if you have received a foreclosure notice. There still may be time. This is called a Short Sale. 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 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 have 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 current market value.
  • A short sale occurs when a negotiation is entered into with the homeowner's mortgage company (or companies) to accept less than the 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. (Common Foreclosure Terminology).
For homeowners to qualify for a short sale, they must fall into any or all of the following circumstances:
  • Financial Hardship