Understanding The Basics Of A Short Sale

Short Sale options for home owners

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 total value of the mortgage.


 

For homeowners to qualify for a short sale, they must fall into any or 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.

 

This seems simple enough, but it is a complicated process that takes the expertise of experienced professionals. I hold the CDPE® Designation and am ready to identify all possible options and, when possible, assist in the quick execution of a short sale transaction.

If you have questions or feel you may qualify for a short sale, please contact me for a free consultation.

Understanding your options now could mean all the difference in the world.

Home for Sale in Loveland, Colorado

5293 Apricot Dr

Loveland

Sale
$ 480,000
5293 Apricot Dr Loveland home for sale
3 Baths
4 Beds
3600 SqFt
N/A Garages

512 Deer Meadow Dr

Loveland

Sale
$ 836,590
512 Deer Meadow Dr Loveland home for sale
4 Baths
4 Beds
5082 SqFt
N/A Garages

4843 Mariana Hills Cir

Loveland

Sale
$ 706,253
4843 Mariana Hills Cir Loveland home for sale
4 Baths
4 Beds
3630 SqFt
N/A Garages

12422 W County Road 18 E

Loveland

Sale
$ 850,000
12422 W County Road 18 E Loveland home for sale
4 Baths
4 Beds
5926 SqFt
N/A Garages

3874 Adine Ct

Loveland

Sale
$ 439,900
3874 Adine Ct Loveland home for sale
3 Baths
4 Beds
2887 SqFt
N/A Garages

1942 Seven Lakes Dr

Loveland

Sale
$ 540,000
1942 Seven Lakes Dr Loveland home for sale
4 Baths
4 Beds
3662 SqFt
N/A Garages

2868 Hidden Valley Dr

Loveland

Sale
$ 1,880,000
2868 Hidden Valley Dr Loveland home for sale
6 Baths
4 Beds
7750 SqFt
N/A Garages

6250 Cdebaca Ct

Loveland

Sale
$ 675,000
6250 Cdebaca Ct Loveland home for sale
3 Baths
4 Beds
4610 SqFt
N/A Garages

3040 Magnetic Dr

Loveland

Sale
$ 371,995
3040 Magnetic Dr Loveland home for sale
4 Baths
4 Beds
2526 SqFt
N/A Garages

519 Newton Dr

Loveland

Sale
$ 490,000
519 Newton Dr Loveland home for sale
3 Baths
4 Beds
3891 SqFt
N/A Garages

2100 Ponderosa Dr

Loveland

Sale
$ 640,000
2100 Ponderosa Dr Loveland home for sale
3 Baths
4 Beds
4604 SqFt
N/A Garages

1064 Coral Burst Dr

Loveland

Sale
$ 654,995
1064 Coral Burst Dr Loveland home for sale
4 Baths
4 Beds
4241 SqFt
N/A Garages

Other Articles