What is a short sale?
Do you owe more than your home is worth but need to sell anyway? A short sale may be the answer! When it comes to real estate, a short sale is the process by which your home is sold for less than is owed on the mortgage(s) to the property.
How do short sales work?
Your home is listed on the open market at market value and a buyer is secured. The sale's completion will be "subject to short sale approval".
Once under contract, a documentation and negotiation process with the lender follows, where the lender determines:
- The seller has a financial hardship,
- The property debts exceed its value.
- It is in the lender's best interest to allow the home to sell and accept a short payoff.
The short sale is approved and the property moves forward to closing as in any other sale, with sellers being forgiven the excess mortgage debt. Some sellers even receive relocation incentives.
Upside down and need to sell?
We've been specializing in short sales since 2008! We've helped hundreds short sell and move on with their lives, and we can help you!
Last Updated on December 26, 2023 by Minna Reid