What is a Short Sale?
A short sale occurs when a lender/bank agrees to allow a property owner to sell mortgaged property for less than the total amount owed the lender/bank on any loan(s) where the property has been used as security and accept that reduced amount to release the mortgage and allow transfer of ownership. A short sale commonly occurs when a home no longer has a market value sufficient to pay the outstanding loan(s) and the owners are at risk of defaulting on the mortgage. Often, it is the best solution for homeowners and lenders when a property's value is "underwater" because it eliminates the need for foreclosure. The homeowner wants to avoid foreclosure because a short sale may not be as damaging to his/her credit history and the bank generally wants to avoid the legal fees and other costs associated with foreclosure. The seller(s) are still be responsible for the loan defficiency until they are released by the lender(s)or the amount still owed is paid.
A short sale can be a wonderful opportunity for a buyer who may be able to purchase the home under market value. Often times, short sales are offered at a discount to comparable homes that are not short sales.
So why don't all buyers purchase short sales? The drawback to a short sale for a purchaser is that the lender(s) must approve the contract between the homeowner and the buyer, and unfortunately that can take time. You can expect a typical short sale to take 90-180 days from contract to close (a conventional or bank owned sale usually closes in about 30 to 45 days) and there is no guarantee the bank will approve the terms of the contract, in which case it will not close at all and the buyer is back to square one.
Is a Short Sale Right for You?
For Sellers who owe more on their mortgage loan than the market value of their home, a short sale may be an option. At Realty Executives we have the experience to help you ascertain whether a short sale is a viable option for you and the trained personnel to manage the complicated process.
For Buyers, a short sale can be a tremendous opportunity to purchase a home at less than full market value. If you are flexible when it comes to timing, and are patient, then purchasing a short sale might be for you. At Realty Executives Seminole, we have the experience to determine if a short sale fits your needs.Realty Executives Seminole is not associated with the government, and our service is not approved by the government or your lender.
Even if you accept this offer and use our service, your lender may not agree to change your loan.
If you stop paying your mortgage, you could lose your home and damage your credit.