What’s “Short” about a Short Sale?
Three things you need to know about Short Sales
Here’s a good definition of the term “short-sale” …but there’s more to it than you can get in any book definition!
Take a look at this link to a short sale blog that will give you updated information about local short sales.
First important point, “short sale” is really not the correct term
This type of sale is really a “short pay” situation…housing market declines created a situation where almost half of the homeowners in this area have mortgage loan balances that exceed the present market value of their property…commonly called “Negative Equity “ or “Underwater Mortgages”.
If Homeowners with negative equity they are forced to sell now they have to make a choice:
- Bring enough money into escrow from their savings to pay off the negative portion of the loan
- Ask the lender to forgive a portion of their debt…this is the definition of a Short Sale.
Second important point…Owners need to do their Homework First!
Borrowers facing foreclosure need to understand all their options…and the consequences of each choice…right now that’s harder than getting a Ph.D. in Astrophysics.
FORTUNATELY…we have a few good resources…Fannie Mae, Freddie Mac, and HUD all have great pages about avoiding Foreclosure.
There are many reasons why a Short Sale may…or may not…be a borrower’s best option…but learning about the choices is ALWAYS the first step…I’m always here to answer questions…phone calls are free…knowledge is priceless
The third important point:
Behind on payments, or soon will be?
Call me RIGHT AWAY…If you Wait it may be Too Late!
Mortgage problems are not like Wine or Cheese…they DO NOT improve with age
We can work with ANY situation…but it’s WAY BETTER to start early…more time equals more alternatives.
I know personally how difficult and embarrassing this process can be…I bought at the top of the market…and at one point it was questionable if I would be able to make my next payment…don’t let hesitation cause you to lose valuable time. All of our consultations are COMPLETELY CONFIDENTIAL…I never discuss any details of your situation with anyone else.