Short Sales

What is a Short Sale Short SalesWhat 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 when it comes to these transactions. Recent changes in corporate policy and the Obama administration have also improved the chances of getting a short sale approved.

Official definition of a short sale:

  • 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 buyer closes on the property, and the property is then ‘sold short’ of the total value of the mortgage.

Circumstances to qualify for a short sale:

  • Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
  • Monthly Income Shortfall – In other words: “You have more month than money.” A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
  • Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.

Not all homeowners qualify for a short sale – nor does every home:

Thinking a short sale may be the solution for a financial crisis and a quick and easy out, homeowners jump on the bandwagon without the full understanding of what is a short sale and the consequences of a short sale.  Not every home owner qualifies for a short sale.  Banks require homeowners to meet a set criteria before even considering a short sale.  That being said, not every home is a candidate for a short.  Short sales are not the answer to homes on the market that are not selling.  A homeowner who is considering a short sale should understand what a short sale is and the consequences of a short sale.

Short sales may seem simple enough, but it is a complicated process that takes the expertise of experienced professionals.  As a Realtor that holds the CDPE® Designation, I can, through our free confidential evaluation, help determine potential solutions based on your individual situation, needs and property value.  Knowledge of the options can  mean all the difference in the world to you and your family.

Choosing the wrong Realtor to manage your short sale can have disastrous results. As a matter of fact, choosing the wrong Realtor to help you through this financially stressed situation can and will have long term effects. Kyle Harrison and his team of experts understand the importance of staying up-to-date with short sales, the short sale process and the entire real estate industry. Kyle is a Certified Distressed Property Expert® (CDPE) and has been doing short sales for over three years. They have successfully closed over one hundred short sale files to date. Kyle and his team will lead the way, navigating you and your family through what can seem like a daunting process. Go to the Getting Started page today and take the next step, it will be the best decision you make.