A short sale happens when you sell your house for less than your remaining mortgage balance, the proceeds of which go to the lender and in return the lender forgives the remaining balance. Selling your home as a short sale is one way to avoid foreclosure.
As a general rule, lenders lose money when they foreclose on a property. Consequently, they would rather not have to foreclose if it can be avoided. A short sale represents an opportunity to cut their losses because a short sale usually allows them to recoup more of the cost of the loan than a foreclosure process would.
However, don’t think that a short sale is an easy thing to accomplish. In order to get permission for a short sale, you must provide documentation showing a genuine financial hardship. The decision for accepting a short sale is solely in the hands of the lender. The lender must first agree, but this is not the final word. If there is mortgage insurance involved, this company also gets input on the decision. If there is an investor backing the mortgage, they also get input as to whether to accept a short sale.
The transaction process for a short sale can be rather cumbersome as well, whether you’re on the buying or selling side. Many short sales fail due to additional demands by the lender, such as requiring the broker to reduce his or her commission and/or that the seller signs a document requiring him or her to pay back the shortfall.
It is critical to have a real estate agent who is familiar with the short sale process to assist in navigating the entire process.
Accurety, LLC has real estate agents trained on the short sale process and can successfully assist you get short sale approval from your lender and sell your property. Selling your home as a short sale can be a long and often complex process. We will work with you every step of the way to ensure that the correct paperwork is submitted to the lender and allow you to sell your home with no further financial obligations.
Contact us if you are interested in selling your home but are concerned that you may not have the equity needed to pay off all mortgages and liens. An Accurety, LLC agent certified in the short sale process will walk you through the process of determining if a short sale is the best solution for you and assist you throughout the process.