What is a short sale? (Or Pre-Foreclosure)
A short sale is where a home owner owes his lender more that his home is worth. In a short sale transaction, the lender, or lenders, agree to accept less than the mortgage amount owed by the current homeowner.
For example: Lets say I owe $300,000 on my current mortgage and I need to sell my home. Due to the current real estate market, the homes in my neighborhood are only selling for $250,000. I easily find a buyer at $250,000; however, my lender has the last say on the contract, my lender must to agree to allow me to sell my home for $250,000, a $50,000 loss. In some cases, the difference is forgiven by the lender, and in others the homeowner must make arrangements with the lender to settle the remainder of the debt.
Why is the number of short sales rising?
Because of the recent economic crisis, including rising unemployment, and drops in home prices in communities across the nation, the number of short sales is increasing. Since a short sale generally costs the lender less than a foreclosure, it can be a viable way for a lender to minimize its losses.
A short sale can also be the best option for a homeowners who are “upside down” or “under water” on mortgages because a short sale may not hurt their credit history as much as a foreclosure. As a result, homeowners may qualify for another mortgage sooner once they get back on their feet financially.
Think this might be an option for you?
Is you home worth less than you paid for it? Are you receiving letters and calls from your lender? Please know that these hard times will pass, things will get better. There are options for you. You can regain control. Use the contact tab on this website and a experienced Short Sale Negotiator will contact you shortly. All communication is confidential.
Tiffany Jacobs
Advantage+ Real Estate Team
RE/MAX Olympic
9214 Center Street #100, Manassas, VA, 20110
Direct: 571.209.8133
