What is a Short Sale?
A short sale is a property sells for less than the amount owed on the mortgage. But to be technical, here's a more official definition:
- A homeowner is 'short' when the amount owed on his/her property is higher than current market value.
- A short sale occurs when a negotiation is entered into with the homeowner's mortgage company (or companies) to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is then 'sold short' of the total value of the mortgage.
If a homeowner can no longer afford to pay for
their mortgage and does not qualify for a loan modification; a short
sale can be an excellent solution to avoid foreclosure. Due to
overwhelming market changes, banks and lenders have become much more
negotiable when it comes to these transactions.
Our agents at Realty On Demand, have been negotiating short sales since 2007. We have seasoned agents who have been very successful at getting short sale approvals. Our agents have worked with Bank of America, Suntrust, ASC Mortgage, Wells Fargo, Ocwen, GMAC, Capital One, United Bank, Greentree Servicing and other banks.Many banks and lenders offer programs which will pay a relocation fee to seller at the time of settlement. Our agents will work diligently to get the best possible outcome for our clients.
If you would like more information about short sales, please call our office and one of our agents will be happy to assist you.
