Short Sale Program Notes
- Get out from a bad loan by selling your home even when you owe more than it's worth.
- Good alternative to foreclosure as it should have less of a negative impact on your credit score.
- Even when loan modification isn't an option, short sales are still viable.
Loan Modification Is In Your State!
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Latest Articles from AMLG
- What is Loss Mitigation?
- Loss Mitigation Programs
- Behind on Mortgage Payments? Don’t Wait. Do Something About It.
- The Short Sale Process
- Short Sale or Foreclosure – Which One is Better for Borrower?
- Reasons for the Need of Foreclosure Prevention
- What Happens in a Short Sale Negotiation
- The Foreclosure Process
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The Short Sale Process
The short sale process is a real estate transaction where a financial agreement is made between a borrower who is unable to repay a loan amount that was taken against the property he/she owns and a lender who has given … Continue reading
Short Sale or Foreclosure – Which One is Better for Borrower?
The recent recession or financial downturn of the global economy has affected everyone. As a result, in the last few years, there has been a tremendous increase in the number of homeowners who have received default notices for not paying … Continue reading
What Happens in a Short Sale Negotiation
Like any other financial deal, a short sale also should be done very carefully. Moreover, it will need a high level of patience from all parties involved in the process. In a short sale deal, one of the biggest challenges … Continue reading
Short Sale Help to Make Sure You Make the Most of a Difficult Situation
If you are looking to sell your home through the short sale process, getting help is always a good idea. These are complicated transactions that can easily go awry without an experienced hand guiding you through the process. Here are … Continue reading
Short Sale Overview
Like loan modification, short sale is a relatively new term in the real estate vernacular. While the concept has been around, it has gained popularity since the housing market came to a screeching crash in the second half of the last decade.
The popularity of short sales is owed to the fact that it lets owners get out from under the giant rock that is a house with a fast-declining value.
It hasn’t been unheard of to see homes once valued at $500,000 plummet to, say, $200,000. When the owner is left with a mortgage of $450,000 and a home value of $200,000, it’s obviously a big problem.
Refinancing is impossible. So is selling the home unless one manages to come up with the hefty sum of cash still owed on the loan.
Enter the Short Sale
Banks have no choice but to acknowledge that the home value’s decline is a problem that can’t be remedied and, as such, they are inclined to work with owners to remedy the situation. They will often approve the home to be sold at a price lower than what is actually owed on the loan. In other words, the owner can sell it “short” of what he or she actually owes.
A short sale can get you free of a loan that is otherwise impossible to pay back.
Of course, the process doesn’t come easily. You may have a buyer for what the home is currently worth, but the banks don’t just say, “ok, we’re all square.” They want to maximize their return and will often counter with a different price. The process can drag on for months.
Employing skilled agents and negotiators is critical to your success in a short sale. With good people and a little patience, the process will work itself out and you can be free of a burdensome loan.