A Short Sale results when the homeowner sells their property, the net proceeds are insufficient to payoff the mortgage balance, yet the mortgage company agrees to accept less than the mortgage payoff amount in order to close the sale. All Short Sales are subject to mortgage company approval and require an extensive amount of work to reach a successful outcome.
There are no guarantees a Short Sale will be approved or ever close, but when the process has been professionally handled by a Realtor familiar with short sale transactions, preferably a CDPE, the odds of success are greatly enhanced.
A short sale is NOT the same as a foreclosure! There are major differences between the two. A foreclosure should be avoided at all costs, as it does serious, long-term damage to a person’s credit.
In addition to avoiding possible foreclosure, homeowners who have a successful short sale negotiated on their behalf are forgiven large sums of money; oftentimes without a deficiency judgment or requirement to repay!
Short Sale Complexity
Short sale transactions are highly complex. Real estate agents are expected to follow a myriad of specific guidelines incorporated by the mortgage company, as well as by the investor(s) of the mortgage notes. Each mortgage company is different and has their own rules, which of course adds complication and challenges ones understanding of the process. A particular mortgage note could be owned by several investors in different parts of the world, thus requiring multiple negotiations with respect to what each investor will accept as a loan payoff. When a seller has a second or third mortgage on their house, the level of complexity increases almost exponentially and the likelihood of a successful short sale diminishes.
These complex negotiations with the investor(s) and the mortgage companies do not commence until after the real estate agent has negotiated a sale with a buyer for the seller’s house. Finding the buyer is the easy part. Following the lender and investor guidelines, then successfully negotiating the short sale with multiple parties and closing the deal is the tough part. The average real estate agent has not been trained in the complexities of a short sale and is reason they close on such a low percentage of attempted short sales.
Short Sale Solution
- If you are experiencing any type of hardship today (i.e. loss of job, death in family, reduction of income, divorce, separation, illness, transfer, too many bills) you may qualify for a short sale of your home
- You do not need to be behind in mortgage payments to qualify for a short sale of your home
- To review your options now and determine whether you might qualify for a short sale, contact me for a free confidential discussion, or call my office at (952) 431-3900
- If you are a candidate for a Short Sale, I will personally meet with you at your home to layout steps, strategies and goals of selling your house, avoiding foreclosure, eliminating some or all of your mortgage debt and planning for future living arrangements
- If you have been foreclosed upon already, or will be foreclosed upon prior to being able to get your house sold, it is still possible to redeem your house after the foreclosure sale. While this may or may not be advantageous to you (based upon your specific financial situation), we will explore the possibilities and determine whether there is a way to improve your current situation
