A Short Sale is defined as a sale of real estate in which the proceeds from selling the property will fall short of the balance of debts secured by liens against the property and the property owner cannot afford to repay the liens’ full amounts, whereby the lien holders agree to release their lien on the real estate and accept less than the amount owed on the debt. Any unpaid balance owed to the creditors is known as a deficiency. Short sale agreements do not necessarily release borrowers from their obligations to repay any deficiencies of the loans, unless specifically agreed to between the parties.
More simply explained, a Short Sale is when you owe more than the current value of your home. Remember, even if you list the home price high, a buyer with a mortgage can only buy up to the appraised price.
A short sale is often used as an alternative to foreclosure because it mitigates additional fees and costs to both the creditor and borrower.
It is wise to consult with a Realtor with Short Sale knowledge before it gets to the point of foreclosure.
I stay on top of real estate laws and as of November 2012 there has been a new law passed for all Freddie Mac and Fannie Mae mortgage homeowners. This law also streamlines the procedure to make the process easier, smoother, and faster.
- First, we will assess if you qualify for a loan modification program which doesn’t count your current credit but rather extends your payments, a forbearance, or renting out your property
- I can help you find out if you qualify for a Short Sale even if you haven’t missed a payment
- If you have missed several mortgage payments, have a low credit score, and serious financial hardships I will obtain the documentation required
- I know if you can qualify for a Short Sale depending on how many miles away you are from a job transfer
- I will obtain the right documents to obtain a waiver to pursue a deficiency judgment
- You may consider consolidating and I can streamline this process
- There may be monetary advantages to second lien holders to expedite the Short Sale process
- Military personnel have many additional advantages and I can help with pursuing all the advantages
- I will make sure that all communication is timely between my client and the mortgage servicer, there are laws now on shorter timelines than ever before and I will make sure to explain that Time is of the Essence with all communications
- I will also let you know when you can obtain a new mortgage after your home sells, I will help you find the right kind of short or long term home you need
There are many Short Sale homes now on the real estate market but for most people it’s their first time facing this.
Knowing this, I will develop a timeline with a step by step process and guide you through each step during our first meeting.
As a Realtor, I will try to keep this as easy and streamlined for you, we can also have a Power of Attorney signed if you want me to handle everything.
For a Free Consultation
Call Ann McGuire
Coldwell Banker Realtor