The term “Short Sale” has become a staple of a catch phrase in the real estate industry. You have most likely heard neighbors, friends or coworkers throw this term around in conversations. But what exactly is a short sale and what does it consist of?
A short sale occurs when a homeowner sells their home for less than the amount to cover the loan balances tied to the property.
For example: If you have a mortgage balance of $150,000 and you are only able to sell your home for $100,000 you will be “short” $50,000 . This “short” amount is known as a deficiency.
Based on your ability to afford the mortgage payments, consideration of any financial hardships and a review of your combined assets, the lender may waive this deficiency. This can also be referred to “forgiving the debt.”
A short sale is almost always the best path to take with regards to your home. Alternatives to a short sale can involve troubling foreclosures or unfavorable loan modifications.You want to avoid having a foreclosure on your record by all means. A foreclosure will be severely damaging to your credit and will remain in public records for an extended time period. The worst implication of a foreclosure is that the lender can legally pursue you for the full amount of the deficiency owed.
With a loan modification, the lender can slightly reduce your interest rate for a limited time period; however, your principal balance will not be downsized. This short term arrangement will only delay your recovery and sway you back to square one in the near future.
As a REALTOR® with the advanced designation of being a CDPE – Certified Distressed Property Expert, I will proudly lead and manage the short sale process for you. For more complex ownerships and financial situations I also have well established relationships with real estate attorneys. Together we will leverage you to the most solid position. I have guided many of my valued clients through the following steps:
• Officially listing your property for sale
• Drafting up a justified hardship letter
• Accepting a firm purchase offer from a buyer
• Submitting a short sale package to your lender
• Negotiating favorable terms & conditions
• Closing the deal within a sensible time frame
If you are wondering where to start, have questions about qualifying for a short sale or what options and benefits are available, please contact me now. Feel free to send me an e-mail at Jasmine@SeeVegasHomes.com or call or text me directly at 702.417.0884.
I look forward to helping you out!