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

  • 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.

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

  • Financial
    – There is a situation causing you to have
    trouble affording your mortgage.
  • Monthly Income
    – 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 would allow you to pay down your mortgage.

seems simple enough, but it is a complicated process that takes the
expertise of experienced professionals. As a  CDPE in your area I can identify all possible options and, when possible, I can assist you in the quick execution of a short sale transaction.

Tagged with: