What’s A Short Sale?

A short sale occurs when the lender agrees to take less than the full amount required to pay off existing loans in full because the outstanding loan balance is greater than the proceeds realized from the sale of the property.

This sounds simple enough and is the definition most agents will give you. The problem is in the details. The terms of the approval are almost always dictated by the lender. Most sellers and many agents assume any approval is a “good approval”, which is often not the case.

If you’re considering a real estate short sale there are things you need to know before speaking to your lender. Consulting with a certified and licensed short sales expert compliant, licensed professional versed in short sales and the foreclosure process is a must.

Why Would My Lender Accept Less Than Is Owed?

Knowing why and how much your lender does not want to foreclose on your home is crucial to the negotiating process. It’s oftentimes much more expensive for the lender to modify your loan than it is to simply foreclose on you and sell it, or accept a short offer and pay all the associated sales costs.
Of course your lender would prefer that you stay in your home and continue making payments but selling it and getting the “bad asset” off their books is frequently their next favorite choice. Many lenders will negotiate short sale terms quite favorable to you, oftentimes allowing you to walk away for free and with zero delinquency judgments.
A successful no cost short sale with zero deficiency judgments looming in your future can be possible if you work with an expert team to get it done.

Will I Qualify For A Short Sale?

Has Your Home’s Market Value Dropped?

Whether you’re doing a loan modification or short sale, hard comparable sales will be used to substantiate that your property is worth less than the unpaid balance owed the lender. I provide a comprehensive property value report designed to determine your properties 30, 60 and 90 day sales price value – the same info your lender will want.

Make sure to contact me at 949-903-3883 or jerry.wingo@century21com for details and more information on short sales.