What is a Short Sale?

So you went house hunting 2 or 3 years ago and found THE ONE. It was priced moderately high. Your agent didn't negotiate a lower price because a few years back, the seller didn't have to come down from list price . If you wouldn't pay asking price, the next person would. BUT you LOVED it, and hey- you could and DID get 100% financing. ( Well, you probably got an 80/20 loan so you could avoid paying PMI insurance but get an astronomical rate on your 2nd loan.) Great. Until something happens-maybe your hours got cutback at work. Or there could have been an illness or a divorce in the mix. Perhaps you never REALLY could have comfortably afforded the house anyhow.

Now that reality has set in and money is tighter and tighter, you have come to the realization that you just can't afford the payments anymore. If your already a month or two behind, catching yourself up is almost a laughing matter. So you come to the harsh realization that you have to sell. But wait! You owe practically the SAME as you did when you first bought the house, now the market has dropped, and your house just isn't worth the amount you owe. The carpet might need to be replaced... the paint is looking a little rough...you really should landscape. But if your behind on the mortgage how on earth can you afford to fix those things?

So what is a short sale????

A short sale is what happens when you have a verifiable reason that you can't keep up the payments on the house AND selling it for what you owe just isn't possible. An experienced agent is able to list it, get a buyer, and get APPROVAL from your lender to let it be sold for less than what is owed. That makes the deal a "short sale". Questions? Ask away!