The term “Short Sale” is quickly becoming the fastest growing 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 JasmineSellsVegas@Gmail.com or call me directly at 702.417.0884.
I look forward to helping you out!