Short-Sale

Short Sale

A short sale is a property transaction in which your lender agrees to settle your loan for less than the amount you currently owe on the existing mortgage. A short sale is most commonly achieved by listing your house on the market in hopes of generating offers from buyers. While you as the home owner will have to be involved in the process, the banks loss mitigation department will have the final say when it comes to making decisions.

For property owners severely under water this could mean a bank will agree to sell the property for $235,000, even through you have an existing loan on the property of $415,000. Short Sales are typically listed on multiple listing services and are open to the public just as a traditional listing would be.

Similar to engaging in a loan modification all decisions as to whether a short sale will be approved and at what price, are made by a lenders’ loss mitigation department. It is highly recommended that you hire a Licensed Real Estate Broker to perform a short sale if you are considering this option.

As opposed to Loan Modifications it is never recommended to perform a short sale without the help of an expert. Especially considering most banks will pay commissions and costs since you most likely won’t have the necessary funds.

Visit our Short Sale training center if you are looking for alternatives to staying in your current home. Educate yourself on what will be required of you, and how to proceed forward once it has been decided that a short sale may be the right decision for your needs.

Back to Homepage