What is a short sale?

A short sale is when a home seller wants to sell his/her home and owes the bank more money than the house is currently worth. An example of this is if someone owed their lender $300,000. The market value of their home is now $270,000. The seller would need the bank to accept a short sale for the difference between the two amounts, or $30,000. The bank will be taking a loss for the $30,000 plus other expenses.

Who is eligable for a short sale?

A person may be eligable to do a short sale if they meet certain criteria from their lender. Most lenders require a home owner to be behind in their payments. They will also be required to provide a letter of hardship explaining why they are unable to make their mortgage payments. Other financial documents will need to be provided as well, such as: most recent bank statements, pay stubs, etc.

Will I be responsible for the difference between what my house sells for and what I owe the bank?

In most cases the bank will absolve the home owner of the difference. Each home owner will need to check with their bank to make sure they will not be responsible for the difference after their home sells.

Who pays the commission in a short sale?

The lender will pay the commission to the real estate agents in a short sale. There will be no out of pocket expenses from the seller for commission.

Can I sell my home without doing a shortsale?

It depends on several factors. I will need to evaluate your current situation. A market analysis will need to be done to determin the current market value of your home. I will also need to know how much is owed on the mortgage(s). After that I will be able to determine what the best course of action will be. Please contact me so I can schedule a free consultation and free market analysis.