Open House Listing

What is a Short Sale?

A short sale is when a property is sold with an agreement with the lender for less than is owed on the mortgage.

• The howeowner is behind on payments and facing foreclosure.
• A set of documents showing that you qualify for a short sale is provided to the mortgage lender.
• If the lender agrees to the short sale and a buyer is interested in the property then the purchase transaction can continue like any normal sale. 

Who is eligible for a Short Sale?

In order to qualify for a short sale, you must have already missed a mortgage payment or anticipate that a mortgage payment will be missed in the very near future.  

The property is put on the market for sale.  The homeowner must make a considerable effort to sell the home at present market value.  The bank will negotiate, however to qualify for a short sale the homeowner must make every effort to get close to the current market value. 

The homeowner must be in distress due to one of the following situations: 

• Too much debt
• Loss of a job
• Divorce
• Business failure
• Military service/relocation
• Incarceration
• Damage to property due to a natural disaster (storms, earthquake, etc.)
• Death of a wage earner in the family
• Inheritance