Short Sale SellersWhat are Short Sales?
A short sale happens when a homeowner needs to sell the property for less than what is owned. The net proceeds of the sale are then not sufficient to cover the mortgage(s) and commission of the realtor in full, thus the lender pays the difference.
Who can consider a short sale?
A borrower that cannot afford to pay their mortgage or investment property should try to avoid foreclosure on a property, since it has a much higher effect on credit score than a short sale.
Why will a bank approve a short sale transaction?
It costs a bank or lender much more to foreclose on a property than accept a short sale in most cases. Foreclosures are very expensive due to legal fees which involve attorneys, realtors, locksmiths, lost payments, lost interest, lost market, asset management services and much more. Banks do not want to own the property.
Can a seller consider a short sale?
Yes. Homes are taking longer to sell and are declining at a record rate. Time is really important in deciding if a short sale is a good option. You do not want to enter the foreclosure process at the point of no return when short selling could have been an option.
How to do a short sale?
Find the help of an experienced realtor who can close the deal and has experience working with lenders and banks with this type of unique transaction.
How much is a short sale?
Free, on your behalf since the bank will be paying out of pocket for the realtors commission and the net loss. If someone approaches you promissing a short sale service with an up front fee, do not sign with them. You shouldn’t have to pay for those services. The commission is paid to the Realtor as part of the closing costs approved by the bank.
Tags: asset management services, foreclosure, investment property, mortgage
