Short Sales Explained
A short sale can be an excellent solution for homeowners who
need to sell, and who owe more on their homes than they are worth. In the past,
it was rare for a bank or lender to accept a short sale. Today, however, due to
overwhelming market changes, banks and lenders have become much more negotiable
when it comes to these transactions. Recent changes in corporate policy and the
President Obama administration have also improved the chances of getting a short
sale approved. But to be technical, here's a more official definition:
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A homeowner is 'short' when the amount owed on his/her
property is higher than current market value.
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A short sale occurs when a negotiation is entered into with the homeowner's
mortgage company (or companies) to accept less than the full balance of the
loan at closing. A buyer closes on the property, and the property is then
'sold short' of the total value of the mortgage.
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For homeowners to qualify for a short sale, they must fall
into any or all
of the following circumstances:
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Financial Hardship – There is a situation causing you to have
trouble affording your mortgage.
-
Monthly Income Shortfall – In other words: "You have more month
than money." 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 pay down your mortgage.
This seems simple enough, but it is a complicated process that takes the
expertise of experienced professionals. I hold the CDPE® Designation and am
ready to identify all possible options and, when possible, assist in the
quick execution of a short sale transaction.
If you have questions or feel you may qualify for a short
sale, please contact me for a free consultation.
Understanding your options now could mean all the difference in the world.
Learn how agents with the
Certified
Distressed Property Expert® designation are best suited to help distressed
homeowners.
I am a CDPE…Contact me today:
Ryan Jennings
Keller Williams Realty
12008 South Shore Blvd. Suite 201
Wellington, FL 33414
(561) 313-2627
www.WPBhomes4sale.com
