What Is A Short Sale?
Simply put, a short sale occurs when a lender(s) agrees to accept a lower sale price than the property is worth. Example: Seller owes $200,000, fair market value for property is $150,000. If the lender(s) agree to accept the $150,000 price, you have a short sale. Sometimes the difference is “forgiven”, sometimes a payment arrangement between seller and lender is reached. This is not an option just because your home is worth less than you owe. The seller must have an actual hardship which would otherwise place the home into foreclosure, and the seller would most likely be required to use any and all assets as required by the lender.
Now, the above description is for a short sale at the very basic level. There are many variables which affect the complexity and ultimate success or failure of each short sale. Everyone must do his/her part in a timely fashion or the plan falls apart. Whether you are a buyer or seller in a short sale transaction, you need a professional with the experience and training to ensure the best possible outcome.
Look for a real estate professional with the SFR logo to increase your odds!