Home Seller
What is a short sale?
A homeowner is short when:
Homeowner are “short” once they owe an amount on their property that when combined with closing costs and commissions equals more than the current market value.
A Short Sale happens 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 “sold short”.
A Short Sale is a method of avoiding foreclosure. Foreclosure can have devastating consequences for a homeowner. A foreclosure entry is almost impossible to ever get off your credit report. You many lose more than 300+ points on your credit score. Future employers often do not hire individuals who have had a foreclosure. You will have to disclose foreclosure on future mortgage and credit applications. Jobs involving government clearance may be denied to you.
For a bank or mortgage company the advantage of a short sale is in avoiding the huge costs in taking a property in foreclosure. Often a bank will lose up to 50% of the value of a house in foreclosure. If possible a short sale is a better remedy for them.
A Certified Distressed Property Expert like Michela Terrazino can help you decide whether a Short Sale is possible for you. We help you through all the phases of this complicated process.
