A short sale is 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.”
While each lender may have varying requirements, there are 3 questions, and they ALL require a YES:
1. The Home’s Market Value Has Dropped
The home is worth less than the unpaid balance due the lender. A specialist, like Jenn, will be able to prepare an estimation of value in line with lender standards.
2. The Mortgage is in or Near Default Status
It used to be that lenders would not consider a short sale if the payments were current, but in some instances this has been reconsidered. Realizing that other factors contribute to a potential default, some lenders are willing to head off future problems at the pass.
3. The Seller Has Fallen on Hard Times
The seller MUST have a financial hardship with a letter stating what that is. The letter of explanation should be honest and detailed about why the seller cannot or will not be able to make their payments, what brought them to this situation, whether or not this situation is long term, any remedies they used to resolve matters and why they cannot pay the difference due upon sale.