What is a Short Sale?
A homeowner is "short" when a borrower owes an amount on his property that when combined with closing cost 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 "sold short". Example, if you owe $200,000 on your mortgage and lender agrees to a sales price of $160,000, a short sale has occurred.
This sounds easy enough, howerer this is a complex process that takes time, patience, good communications skill, organization and professionalism. Our team has earned the Certified Distress Property Expert (CDPE) designation to help you understand the Short Sale process.
How can I qualify for a Short Sale?
To qualify borrowers must have a demonstrable financial hardship. A hardship can be defined as a material change in the financial situation of a homeowner that is or will affect his/her ability to pay the mortgage. Examples are:
- Loss of employment
- Income reduction
- Business failure
- Damage to property
- Death of spouse or wage earner
- Severe Illness
- Military service
- Payment increase or mortgage adjustment
- Insurance or tax increase
- Too much debt
- Combination of any of the above
If you are interested in a private confidential conversation about short sales email Mike@BainRealty.com or call (910)367-1671.