Short Sales1:57 PM
Short Sales are becoming increasingly more common these days due to the economy. A big surprise, I know. So what is a short sale anyway and who should be considering the process?
The definition of a short sale is when your lender agrees to discount your mortgage in order for you to sell your home. In other words, you owe more than you can get for your house. The reputation of a short sale is that it is a long process and should be avoided at all costs. In these economic times, it’s not easy to avoid the short sale. Many of us are losing our jobs or taking a pay cut. It’s tough to continue paying your bills on a lower income. Sellers resort to the short sale because they accept that they can’t make their mortgage payments and they’d like to sell before foreclosure.
Not all sellers qualify to take this route. Sellers, who fall short on their mortgage payments and need to sell, must be approved for the short sale process. Another frightening task in this new economy, but lenders must protect themselves. The best option to see if you qualify is to apply when a contract comes in on your home. You know what the situation is; you have all of the necessary paperwork to prove your situation; you have a contract that is less than what you owe; and your agent has the comparables to prove this contract is realistic.
If you are able to cooperate with your real estate agent and lender and provide all of the paperwork needed to qualify, your short sale process will go smoothly.
To learn more about short sales, contact your REALTOR® or mortgage lender. You can also click on this link to find out more.