Short Sales

Just what is a Short Sale?

If you have experienced financial trouble as a homeowner, you have probably heard the term “Short Sale” tossed at you as an option. Many times, those who hear and say it the most, really don’t know what it is or how it works.

A short sale is simply the process when the bank agrees to allow an owner to place his/her house on the market for the fair market value of the home as opposed to what that person owes on the home. A short sale is usually done when the homeowner can no longer afford the home and is in danger of foreclosure.

It is important to note that there is far more to the process than just calling up a realtor, placing the home on the market and sticking the words, “SHORT SALE” on the listing. The bank must approve the short sale process. Here are key points to consider/remember when placing your home on the market as a short sale:

  1. The mortgage holder MUST agree to the short sale before it can happen.
  2. There is extensive documentation that must be completed and submitted to the mortgage holder before the short sale can be considered.
  3. The owner MUST be able to show financial hardship that would prevent them from fulfilling their mortgage payments.
  4. If the owner has significant assets such as cash, the mortgage holder MAY ask for a financial contribution from the owner at the closing.
  5. Sellers should always choose a realtor who is knowledgeable of the short sale process before listing the property.
  6. If the foreclosure process on the home has begun, it will NOT END just because you list the property. The Short Sale MUST be approved.
  7. Once a contract is received on the home, the short sale process could still take a minimum of 3 months.
  8. There may be government assistance available to the owner for moving out of the property.
  9. The Short Sale will go on the owners credit but will not show as a foreclosure.
  10. Owners SHOULD NOT attempt to negotiate their own short sale with the lender unless they are a licensed Realtor or attorney.

There is so much more to a short sale. Above are some of the more popular answers to questions Realtors are asked about Short Sales. At Supreme Manor Real Estate, we have agents who are experienced in negotiating Short Sales that are most advantageous to our owners. We are also skilled at helping buyers to acquire deals through the purchase of short sale properties.

Give Kim Offord a call at Supreme Manor Real Estate for more information on Short Sales. 773-881-9224.