What is a Short Sale?
November 11 2009
A short sale is simply a method for a distressed homeowner to sell their home, avoid foreclosure and thereby potentially limit their credit score damage. If you are a homeowner facing the possibility of foreclosure then you should look into a short sale listing to avoid it. If you decide on a short sale it is important that the individual “quarterbacking” the process for you is knowledgeable in all aspects of this highly specialized field.
As a seller, in order to qualify to sell your home “short” you must meet the following three criteria.
1. You must be behind on your mortgage payments.
2. You must owe the bank(s) more than your home is worth (based on fair market value).
3. You must be experiencing some sort of verifiable hardship. Examples could be job loss, divorce, medical hardship, death in the family etc.
From the lender’s perspective, they are agreeing to allow a pre-determined sale price that is less than the actual amount owed to be considered as payment in full of the mortgage(s). This has the valuable benefit of preventing a foreclosure and is a much better situation for the seller relative to their future credit-score rating.
From a buyer’s perspective (someone who is considering making an offer on a short sale property), an in-depth understanding of the process is critical both in determining if a short sale property is the right one for you and, if so, how to structure an offer that it has the best chance of being approved by the LENDER. It is possible to get a good deal on a property listed as a short sale but your agent must have the special knowledge necessary to navigate this relatively complicated process.
As the only real estate agent in Nebraska with a CDRS (Certified Default Resolution Specialist) designation, I have the special tools necessary to give sellers the best chance of a successful short sale and to give buyers the best chance of actually closing a short sale transaction. For a FREE consultation please give me a call at 402-964-4937 or send me an email at jim.dobey@CBSHome.com
