SHORT SALES
Unfortunately, in the past, lenders were making loans in amounts that ultimately became too difficult for borrowers to repay. Some of these borrowers may not be able to fulfill their mortgage obligations. When a borrower is no longer in a position to make the mortgage payments, is facing foreclosure and the current market value of the property--including escrow costs--is less than the loan on the property, the borrower may consider a short sale. This could save the lender the expense of foreclosure proceedings and from having another REO property on its books. From the borrower's perspective, the short sale prevents having the foreclosure on the borrower's credit history, and releases the borrower from an obligation that he or she can no longer afford.
In essence, a short sale is a sale transaction subject to a lender's approval in which the lender consents to a sale of the security interest for less than what is owed on the note and accepts the proceeds in full satisfaction of the loan amount. A short sale requires much paperwork and preparation on behalf of the borrower. Typically, before applying for a short sale, the seller must have a ready buyer and all the paper work prepared to present to the lender. The buyer of the property must also be prepared for a protracted time period to conclude the purchase of the property.
If you want to ensure you receive the best “Short Sale” representation in this market, then we would encourage you to give us a call. Time is of the absolute essence with properties in this position. One of the benefits of selling you property as a short pay is that you can buy again in a shorter term. However, if you allow your property to go into foreclosure, it can take up to 7 years before you will be able to buy a property again. Generally, homeowners, who sell their properties in short Sale, are in a position to buy again in a shorter period of time.
