First off, what exactly is a short sale? The name “short sale” is rather confusing. A short sale does not mean the sale of the home will be short. In all actuality, a short sale is generally the longest way to buy a home, with the possible exception of building your own home. No, the name “short sale” refers to the money involved in the sale – meaning the money the home is worth is less than what the seller owes. Therefore, if the home is sold for the amount the home is worth, the seller is short on how much money they have to pay the bank. It is important to use an experienced agent to help guide you through this process.
The key point in this sale, though, isn’t just that the seller owes more to the bank than the home is worth. There are many property owners who struggle with that phenomenon – it’s called being underwater on your home. A sale can only be considered a short sale if the bank (or organization that owns the home) agrees to the property being sold for less than what they’re owed. The bank is losing money on this deal so they have to agree to lose that money.
Why Would a Short Sale Not Be Approved?
There are a number of reasons, but the bank may see a foreclosure as a more profitable option if:
The private mortgage insurance makes up for the costs of foreclosing a property.
The home has too many liens and couldn’t pass a title inspection easily.
The homeowner has filed for bankruptcy
The homeowner has enough funds to pay their mortgage, but is just refusing to pay.
Author:Kelly Siegler Phone: 512-667-4214 Dated: August 30th 2016 Views: 19 About Kelly: I am here to provide you with the service you deserve. ...
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"Expertise and Attention - Seller Clients June 2016
Violet’s expertise and attention to detail was invaluable in the sale of our home. Her research and knowledge of the current market enabled us to price it correctly and get it on the market to leverage the peak sales season.
Because we had our own a target date that we wanted to hit, she was able to recommend resources and services to help us make it happen. She put together a thorough marketing plan that included a timeline to help us get the house ready and to generate interest before the listing went live.
Once the house was ready, she came and helped us stage so that it looked better than it ever had. She even suggested repurposing a rarely used second eating area into an office space. (We wished we had thought of that and utilized the space that way before.)
She scheduled the “go live” and the Open House to coordinate with our schedule to be out of town. I was completely comfortable being away and leaving her in charge for the weekend. We received multiple offers that first weekend. We were impressed with how she professionally and respectfully worked with the other realtors always keeping our best interest at the forefront. She helped us sort through the pros and cons of each offer and compare to come to the best contract decision for us. There were some snafus but she walked us through them. We could not have been more pleased with the outcome."