Short Sales (what you need to know)
| Benefits of a Short Sale vs Foreclosure |
A Short Sale in fact is when the sale of a home is, “Shorter”, smaller than the mortgage balance owed on the property. In a “Short Sale” a lender is willing to take less than is owed on the mortgage for the sale and provide a clear title. For example, if you owe $300,000 on your home and the current market value is $275,000, a short sale is when the lender agrees to accept $275,000 and release you from the mortgage. We do a comparable market analysis and list your property. We notify the lender that there is a potential “short sale” and present them with the listing and the reasons that it is required. Most lenders will proceed with a short sale as it saves them a significant amount of money over the expense of a foreclosure. Back to the top
Difference Between a “Short Sale” and a “Foreclosure”
A short sale is a process where a negotiated settlement is made between the lender that holds the mortgage and the seller for a third party buyer; usually facilitated by a professional like a Realtor® or an Attorney, even before the foreclosure process is initiated by the lender. Therefore, it is considered a pre-foreclosure sale.
A foreclosure is simply when the lender takes back possession of the home through the courts and extinguishes all liens on the property. In turn the lender will then hire a Real Estate Broker to sell the home or place it up for auction. This is a very costly process for the lender. Back to the Top
Benefits of a Short Sale vs Foreclosure
1. First and foremost you get to stay in the home during the course of the sale process. This provides you time to make your moving plans.
2. You can avoid having a Foreclosure show up on your credit report, helping to protect and reduce the impact on your credit rating. A foreclosure on a credit report has a bigger negative impact than a bankruptcy when trying to obtain a mortgage in the future.
3. Lender may release you from any further liability in connection with the loan, which means no “deficiency” judgement.
4. Less Stress, smoother transition.
5. You will have a professional represent and help you through the process. Back to the top
1. We can help you determine if your lender will accept a Short Sale.
2. We can handle all of the negotiations with the lender for you.
3. We will help you prepare all the necessary documentation for the lender.
4. We will market your home and schedule showings
5. We will be available to help you through every step of the process and be available to answer all of your questions.
6. We may be able to help you protect your credit and get a clean start.
Why don’t you call a Sun Castle Realty “Short Sale” Specialist today? Back to the top
