Short Sale Overview

For homeowners who need to sell and owe more than their home is worth, a short sale is an excellent option. Today’s market conditions and changes in the real estate laws have made banks and lenders more willing to negotiate short sale transactions.

What is a short sale?

First, it involves a homeowner who can’t afford his or her mortgage payments and the amount owed on the home is more than the current market value. The homeowner enters into a negotiation with the lender, and through that negotiation, the lender decides how much less than the full balance of the loan they will accept. Once the amount is set, a buyer closes on the property, which is “sold short” of the total value of the mortgage.

Eligibility

To be eligible for a short sale, homeowners must have a financial hardship, a monthly income shortfall, and be insolvent. These criteria have specific conditions that must be met in order to qualify, and other restrictions apply.

Take action, but avoid scams

The process might seem simple on the surface, but it can drag on for months and the negotiations are complicated, especially for homeowners with more than one lender. Beware of the scams (e.g. companies offering to buy your home) and myths (e.g. you have to miss a payment on your home before you’re eligible) that are prevalent.

A successful short sale compares favorably to foreclosure in every situation. To avoid foreclosure, it’s important that homeowners contact a Certified Distressed Property Expert, like the West Valley Real Estate Group. We have 27 years of experience representing buyers and sellers in the West Valley real estate market. We can expedite the process and market your home on our Web site and through several other listing services.