What is a Real Estate Short Sale?
A Short Sale is when a lender agrees to receive a lower amount of an owed debt in exchange for the sale of the property to a third party, usually at no cost to the borrower.
Short sales are also a way for a homeowner to avoid foreclosure on their home and save their credit . Why would a lender agree to accepting less than they are owed? Foreclosure is expensive for a mortgage lender and they are in the business of making loans, not owning real estate.
A short sale avoids the floreclosure process by selling the home before the bank takes it back. Therefore, it is critical for homeowners to work with a Short Sale Expert long before they are 90 days behind in their payments. The process of selling a short sale home is longer and involves more red tape than a traditional sale. Someone who is trained to work short sales can streamline the process and increase the likelihood of an accepted short sale by being involved early in the sellers' hardship. It is best to contact me or your chosen short sale agent before you miss a payment!
There are countless hardships that can turn home ownership from a joy into a burden. A divorce, extended illness., loss of employment, or an unexpected hike in monthly payments can all make a mortgage unaffordable. Ignoring the bills will not make them go away, it will only make things worse.
If you need help a short sale may be the answer. If you would like to discuss how a short sale might help you, please contact me at mari@hiddencoast.com.
