Short Sales

What is a Short Sale?

A homeowner is "short" when the amount owed on his/her property is higher than the current market value.
A short sale occurs when an agreement is made with the homeowner's mortgage company (or companies) to accept less than the full balance of the loan at close of escrow. A buyer closes on the property, and the property is then "sold short" of the total value of the mortgage.

Short sales are considered preferable to foreclosures because short sales (1) lessen the impact a foreclosure can have on the surrounding neighborhood and (2) won't damage the distressed owner's credit as much as a foreclosure. Not every owner is a short-sale candidate and, unfortunately, not every owner can be saved from foreclosure. If, however, a short sale appears to be the best option, there are certain qualifications that must be met:

Valid Financial Hardship - such as loss of job, business failure, illness and medical costs, divorce or death of spouse, natural disasters
Monthly Income Shortfall - A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
Insolvency - The lender will want to see that you do not have significant liquid assets that would allow you to ay down your mortgage.
Sufficient time to accomplish a short sale - pre-foreclosure is the time within which a short sale can be accomplished. Pre-foreclosure is the period beginning with initial mortgage default up to when the distressed property is sold. Not all states have the same foreclosure timelines, so it's critical that you confirm the approximate foreclosure timeline in your state.

Short Sale Myths

The bank would rather foreclose than bother with a short sale
You must be behind on your mortgage to negotiate a short sale
There is not enough time to negotiate a short sale before my foreclosure
Listing my home as a short sale is an embarrassment
Short sales are impossible and never get approved
Banks are waiting on a bailout and not accepting short sales
Buyers are not interested in short sale properties

Do explore all your options and seek advice from qualified finance, tax and legal prfessionals for your particular situation. Time is of the essence.

As certified Short Sales and Foreclosure Resource specialists, w e would be happy to provide a "no cost" consultation to discuss your particular situation, and provide a list of resources in your community.

Go to this website for more specific information on short sales, loan modification, and a lot more:

http://www.shortsalescalifornia.org/consumers/makinghomeaffordable

Paula Azeltine & Meridith Zomalt with Better Homes and Garden Mason Mc-Duffie Real Estate have earned the nationally recognized Short Sale and Foreclosure Resource certification through The National Association of REALTORS^® as well as the Certified HAFA Specialist designation (Home Affordable Foreclosure Alternatives).

According to a recent NAR survey, nearly one-third of all existing homes sold recently were either short sales or foreclosures. For many real estate professionals, short sales and foreclosures are the new “traditional” transaction. REALTORS^® who have earned the SFR and HAFA certifications know how to help sellers maneuver the complexities of these transactions and prevent foreclosure and bankruptcy, which are the least favorable options.

For buyers, foreclosures and short sales can offer great buying opportunities and benefit the larger community. Use a REALTOR^®who has earned the SFR and HAFA certifications.