What is 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 willing when it comes to these transactions. Recent changes in corporate and banking policy along with improved efficiency in the short sale process have helped make it a viable option for homeowners.
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 deficiency). A buyer closes on the property, and the property is then ‘sold short’ of the total value of the mortgage.
See our guide on when for additional questions regarding the short sale process or we’d be happy to schedule a Free Consultation in person or over the phone to help discuss your options.