A short sale happens when a
home owner can no longer afford to make payments on the home, and
find that they can not sell the home for enough money to cover
paying back what they owe to the bank. The home owner can plea with
the bank that they can no longer afford the home and wish to get out
of their financial arrangement with the bank.
The bank will then ask for the
home owner to prove that they have a financial hardship by providing
information such as bank statements, proof of lose of job or serve
reduction of income or proof illness or injury or anything else that
has affected their ability to pay. Also if the home owner has failed
to make a payment it also shows the bank that the owner is in such
financial strains that they are now risking their credit score
taking a hit because of such a hardship. After the bank reviews the
situation, if the bank feels the situation looks impossible for the
home owner to proceed with making payments they will grant them a
chance at trying to sell their home short of what is owed on the
loan. This is where the term short sale come from, its simply paying
the bank less than what is owed and the bank forgiving the
a quick example is:
You paid $500,000 for your
home. the homes value has gone down to $400,000 and if you were to
sell it even at for the $400,000 you will still have roughly 8%
worth closing cost to payout which would leave the equity total at
$368,000 to pay back the bank. thats about ($368,000 - $500,000)
-$132,000 short of what you owe.
With the pandemic hurting the
economy it is no surprise that more and more homeowners are
finding themselves in trouble keeping up with payments on their homes.
Those that took forbearance find themselves in a even worse position
of having to come up with an unreal amount of money due all at once.
Its almost like the banks set you up to fail.
The worst part of all this, if
you don't take action quickly you may be on the devastating road to foreclosure.
While many homeowners may be
feeling hopeless about selling their homes or falling behind on
mortgage payments, there maybe alternatives to foreclosure such as:
Traditional home sale if there is enough equity, Loan
Modification, and Short Sale your
Property. Banks are very aware of the declining market across the
nation, and it's because of this most all the banks are willing to
consider any of these options.
Our team can help you decide
what option is best for you. We can tell you if there is enough
equity to sale your home traditionally which could be your first
option. If you like to keep the home then a loan modification is
your next best option. One warning about modifications reports show
that 80 % of those who took modification back during the great
recession end up defaulting on the payments within the next 18
months, and end up losing the home anyways to foreclosure.
Short Sale specialists have
the experience and knowledge to negotiate on your behalf with your
bank to arrange a Loan Modification, Refinance, or do a
Short Sale. But, timing is critical. Don't wait until the
last minute to contact us. If you know that you're going to have to
move soon, or know that you're going be falling behind in mortgage
payments, contact us now.
Our experience, negotiating skills, and
determination will help you get out of your mortgage debt problems
and move on with your life in a stress free and efficient way.
Let our vast expertise work to your advantage... and it's FREE to
you. A quick call and a few questions can help us determine which is
the best solution to fit your current situation. After we collect
some basic information we can make an appointment for a Free in-home
consultation to go over an effective plan of saving your home and/or
To get started with a FREE
Short Sale consultation, call us today at: