I was shocked to search my own website for the term “What is a short sale” only to find no results. How could that be? I’ve written a bunch of stuff on short sales. Well, I’m solving that little problem right now with yet another basic post on the definition of a short sale.
What Exactly is a Short Sale?
A short sale is something that your REALTOR helps you accomplish to avoid foreclosure. A short sale is when you sell your home for less than you owe. That’s it. That’s as simple as it gets.
What Qualifies Me For a Short Sale?
There is one qualification. That’s all…just one qualification. The offer on your home must be less than the amount you owe on it.
What About My Income?
It doesn’t matter what your income is. The short sale is part of a simple transaction which moves ownership from one party to the next. It’s the sale of a home that’s worth less than you owe. That’s all. People in many different situations go through this process.
- People who can’t afford their mortgage payments do Short Sales.
- People who are tired of paying twice as much per month as their neighbors do Short Sales.
- People who are being relocated do Short Sales.
- People who have a death in the family, divorce, or for some other reason must sell their house do Short Sales.
The ONLY Qualifier is that you owe more than you can get for the home. That’s all.
Know that there are no guarantees that your lender will forgive the deficiency on your mortgage if you attempt to sell your home for less than you owe, as there are also no guarantees that the lender won’t come after you for the difference and win a judgment against you. Consult your real estate attorney for more information about how loan deficiencies can affect your finances and your tax implications.
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I think we’ll see a lot more short sales, given the government’s push to slow down the flood of foreclosures. Some legislation would be nice, especially regarding time frames and requirements on the bank’s part. It would certainly help get more of them closed.
.-= Charles@Real Estate Las Vegas´s last blog ..Las Vegas Housing Market: Foreclosures Down, Sales Up =-.
As long as there are homes that are worth less than is owed, and there is a need for the home-owner to sell, we’ll see a need for short sale approval.
I’m not a fan of legislation. I think it’s the responsibility of the lenders in cooperation with the rest of the housing industry to develop systems to make this process more amiable. I continue to wonder if the deficiency laws are going to be what shape and mold the short sale process, and consequences.
You have written a clean informative article on short sale. This can be easily understood by even laymen like me. You gave straight forward points to make me understand the importance of the concept and how it could be beneficial for individuals like me
You have written a clean informative article on short sale. This can be easily understood by even laymen like me. You gave straight forward points to make me understand the importance of the concept and how it could be beneficial for individuals like me