If you are selling your home, you might have heard about the term “short sale.” If you have been wondering what short sales are about, you’ve come to the right place!
Here in this article, we will provide you with an overview of short sales and the overall process. We will also cover what short sales can do for you should you find yourself in a situation where you need to enter the process.
A short sale occurs when you are selling your home and the offer you receive on your home (and the offer your accept) is less than the total amount that you still owe on your mortgage. Shorts sales are the result of distressed homeownership. If you are having a difficult time selling your home or need to sell it in a hurry, you accept the offer. Thus, sellers end up “short” on being able to pay back the lender who approved your mortgage. Once the bank agrees to accept the fact that they will be getting less than the amount that’s owed to them on the loan, the deal goes through. This is where the term “short sale” comes from.
Recent statistics show that more than five percent of all single-family homes and condominium sales in 2016 were short sales. Many factors can contribute to the need of having to do a short sale, such as finding it difficult to sell your home at a price that would properly pay off your mortgage. This can be affected by the real estate market trends that are currently happening in your local area.
If you find yourself in this position, we can help. We specialize in short sales and can pay cash for your home. Call us today to see what we can do for you.
It’s certainly not ideal to have to do a short sale, but it can be a better option when comparing it to more drastic decisions like foreclosure or bankruptcy. For example, having to do a short sale on your home impacts your credit and your credit score much less than a foreclosure does.
In addition, by doing a short sale, you are able to stay in your home until the sale is actually completed. This is as opposed to a foreclosure situation where you would be being forced to leave your home.
During traditional home sales, the home seller is the one who has to pay all real estate agent commissions and other closing costs. But when dealing with short sales, the bank takes care of these expenses.
The big thing to keep in mind with short sales is that the bank needs to approve of this matter. Even if you already accepted the offer, the bank still needs to give the final approval. This is because they will are the ones taking the financial hit, losing money in the process.
Be aware that there are instances where the bank will prefer for you to foreclose on your home rather than to do a short sale. But this is all based on individual circumstances and on a case-by-case basis.
Again, if your find yourself in a position where you need to sell your home fast, reach out to our team today. We can help distressed homeowners out of most any situation.