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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Foreclosure – Short Sales a Better Option
Short sales are always preferred over foreclosure. because compared to foreclosure, short sales are known to be beneficial for all the parties involved (borrower, lender, broker and buyer). There are probably millions of properties now in the U.S where the … Continue reading
Short Sale – Taxes and Their Implications
Short sale is a financial transaction done in a situation where a borrower faces financial hardships and falls behind on mortgage payments. In simple words it is a debt negotiation process in which the borrower gets relief from paying the … Continue reading
Short Sale vs. Foreclosure
If we compare a short sale vs. foreclosure, we will find a few differences between the two in terms of affecting the borrower. For the purpose of this article, let’s ignore differences in the process and look only at how … Continue reading
Why Use a Short Sale Specialist
A short sale is a viable alternative to foreclosure. We are seeing more and more of these transactions in the housing market. However, the process of the short sale is quite complex and percentage of failure is quite high because … 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.