What is a short sale? 

Many home owners who are facing personal and financial hardships, are upside down on their homes or cant meet monthly mortgage obligations, may not realize there is a alternative to foreclosure, and it often has less of an impact on their credit reports.

According to the National Association of Realtors, a short sale occurs when the net proceeds from the sale of a home are not enough to cover the sellers’ mortgage obligations and closing costs, such as property taxes, transfer taxes, and the real estate practitioner’s commission. The seller is unable to cover the difference.

How do I sell my home as a short sale?

Most times, home owners give the real estate broker permission to discuss the short sale with their bank who is holding the mortgage.  The bank will normally agree to take a loss, however sometimes they can require some kind of payment or that the home owner share the loss. The home is put on the market, and interested buyers make offers through the broker and bank. This is typically a longer negotiation and waiting process than a traditional sale.

The banks typically agree to a short sale since they generally result in smaller financial loss than a foreclosure.

For more information on how to sell your home as a short sale, please request our free short sale info package.