Short Sales
What is a Short Sale?
A short sale can be an excellent solution for homeowners who need to sell, and who owe more on their homes than they are worth. In the past, it was rare for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in corporate policy and the Obama administration have also improved the chances of getting a short sale approved.
But to be technical, here's a more official definition:
A homeowner is 'short' when the amount owed on his/her property is higher than current market value.
A short sale occurs when a negotiation is entered into with the homeowner's mortgage company (or companies) to accept
less than the full balance of the loan at closing. A buyer closes on the property, and the property is then 'sold short'
of the totalvalue of the mortgage.
For homeowners to qualify for a short sale, they must fall into all of the following circumstances:
Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
Monthly Income Shortfall – In other words: "You have more month than money." A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.
Troyce is a Certified Distressed Property Expert® (CDPE) with specific understanding of the complex issues confronting the real estate industry, and the foreclosure avoidance options available to homeowners. Through her comprehensive training and experience, she is able to provide solutions for homeowners facing hardships in today’s market, specifically short sales.
The prospect of foreclosure can be financially and emotionally devastating, and often homeowners proceed without guidance of any kind. Troyce believes that the best course of action for a homeowner in distress is to speak with a well-informed, licensed real estate professional. She has the tools needed to help homeowners find the best solution for their situation. Often, when other options have been exhausted, a CDPE can help homeowners avoid foreclosure through the efficient execution of a short sale. CDPEs don’t merely assist in selling properties, they serve and help save their clients in need.
