What is a Short Sale?
A short sale occurs when a property is being sold for less than the remaining balance of the loan that an owner has against a property. Short sales are very common in today’s market. This type of transaction is very similar to a normal transaction; however, a third party – the lender or bank – is a party to the transaction.
The prerequisite of a short sale is an owner or owners who can no longer make payments on a property due to a legitimate financial hardship. Examples of a legitimate hardship are losing one’s job, divorce and or death.
When a person realizes that they can no longer make their payments, they need to contact a Realtor® who specializes in short sales immediately. The sooner that a Realtor® becomes involved the better, because the clock is ticking toward a foreclosure, or sale of the owners’ property by a trustee on behalf of the lender. The foreclosure can occur in approximately 4 months from the time an owner stops making payments.
A Realtor® may be able to negotiate a loan modification with the bank or lender on your behalf that allows you to make payments and not lose your home. However, this is not always possible.
If a loan modification is not an option, a short sale may be appropriate. The short sale specialist will ask you a lot of tough questions concerning your financial position. He or she is doing so to get your complete financial picture. Your agent will need to provide all of this information to the bank immediately, and missing or incorrect information may delay or prevent agreement by the lender for a short sale.
If the lender agrees to a short sale, the property is then marketed at the price agreed to by the bank. When sold, the previous owner may salvage their credit as a result of not going to foreclosure.
If you or someone you know is having difficulty making payments, considering purchasing a home, moving up or investing in Real Estate, please contact us with their phone number and address and we will ensure that they receive the best service possible.
For more information, please give Derick a call or visit our website: http://Tri-City-Homes.com.
Sincerely,
Derick L. Drumm, Broker, Realtor®, GRI, e-Pro
Direct: (510) 432-0617
Email: Derick@Tri-City-Homes.com
Keller Williams Benchmark Properties
39500 Stevenson Place, Suite 108
Fremont, CA 94539