Short Sales Explained
Short sales represent an excellent solution for homeowners who need to sell their homes, but find themselves owing more on their
mortgage than the home is actually worth. In the past, lenders rarely accepted short sales. Nowadays, however, because of
overwhelming changes in the housing market, banks and lenders have become much more open to the process. Recent changes in
corporate policy for many of the nation's lenders and legislation passed by the Obama administration have significantly increased
the odds of getting approval for a short sale.
A homeowner is considered "short" when the amount owed on the mortgage is higher than the current market value of the property. A
short sale occurs when the homeowner enters into an agreement with the mortgage company or companies where they agree to accept less
than the full balance of the loan at closing. A buyer closes on the property and the home is sold short of the total value of the
outstanding loan.
For homeowners to be considered for a short sale, they must prove financial hardship that would lead to them not being able to
afford monthly mortgage payments. Most lenders will also want to see proof that a homeowner does not have sufficient liquid
assets at his disposal to pay down the mortgage enough to get out from underwater. Though it sounds relatively simple, the
process is actually quite complex, and experts advise the hiring of an experienced professional for homeowners considering the
short sale option.
If you would like more information or feel you may qualify for a short sale, please contact me.
Understanding your options now could mean all the difference in the world. |
|
