When A Short Sale?

A short sale happens when a homeowner owes more on his mortgage than his home is worth in today's fair market value. Therefore, the home is underwater, or upside down. A homeowner's real estate agent then negotiates with the owner's bank to accept less than the balance of the mortgage. For example, if a home is only worth $400,000 but the owner has a mortgage balance of $500,000, then he will be $100,000 "short" when he goes to sell his home.

WHAT IS A SHORT SALE?

     A short sale in real estate is when a lender allows a homeowner to sell their home for less than the debt owed on the mortgage. By working with the right listing agent, many homeowners are able to have all their debt forgiven.

SHORT SALE VS. FORECLOSURE

     A short sale is the best option for many homeowners who are underwater on their mortgage payments, and have been unsuccessful getting their loan rates refinanced or reduced to an affordable rate. In both a short sale and a foreclosure the property is lost, however, a short sale only affects one's credit for two years. A foreclosure, on the other hand, will negatively impact your credit for seven or more years. Another benefit of a short sale is that many banks and government programs offer financial assistance with completing the sale and moving costs. Those who are foreclosed on don't receive that type of assistance.

HIRE A QUALIFIED SHORT SALE AGENT

     Choosing the right short sale agent is imperative. Their job entails much more than slapping the listing into MLS and throwing up a For Sale sign; they will be handling negotiations with the bank. If the short sale agent has inadequate experience dealing with loss mitigation and negotiators, the seller will be the one who suffers in the long run.            

     An experienced agent will be much better suited to negotiate with a lender, because not all lenders handle short sales the same way. The right agent can assure that you will pay little to nothing when selling your home, and their sales commissions are paid by the bank, not the buyer or seller.

     Helping many good people avoid foreclosure in NE Ohio. I take the stress out of a very difficult time for my clients. So many thoughts and anxious moments in their lives, I want closure and let them move on to better times. Of all the short sales I have done, I have never lost one to foreclosure! Why? Because I work hard daily, working the sale, contacting the banks, finding buyers, marketing their home all over the most popular internet real estate sites. I take my work seriously because good lives are in the balance, literally!

BUYING A SHORT SALE HOME

SHORT SALES WORK A DIFFERENT WAY
Purchasing a short sale is very different from buying a regular traditional sale. The main reason is because in a short sale, the market value of the home is less than what is owed to the seller’s lender. During a short sale transaction, the brokers negotiate with the lender to accept a “short” payoff on the loan, and in most cases, forgive the debt altogether. Buyers should be aware that completing a short sale purchase (closing escrow) can take anywhere from 1 month to 6 months or more, depending on the holders of the liens. For example, if the seller only has one mortgage, it is much easier than if he has two mortgages, since each loan has to be negotiated down separately. That’s why working with an experienced Short Sale expert agent is so important.

WORK WITH A QUALIFIED SHORT SALE SPECIALIST!
Short sales require some extra skills from the real estate agents handling them. Every bank has their own procedures, with different documentation they require. Working with an experienced agent is a sure way to increase your chances for success. A qualified short sale agent has experience negotiating with bank managers on your behalf, and can make your case stronger, helping you secure the best possible price.