Ever wonder what a sort sale is and if you should consider i?, Well, a short sale is now a common term referenced in the real estate, as the value of the property is less than what you owe on the mortgage(s). More and more consumers are considering a short sale as opposed to letting their home go into foreclosure. The simple term for a short sale is selling your property for less than what you owe. It is subject to certain requirements that lenders review before they will approve the request.
To understand a little more deeply there are three important parties in the short sale process; the lender, the buyer and the seller. A short sale does not become good news to the seller of the house on a wider scale. It comes into play in time of financial difficulties when you discover the total amount you have is less than the total mortgage so it is impossible for you to pay your mortgage in full. An example, suppose something catastrophic happens like losing your job or facing a major medical problem and you can no longer afford to pay that mortgage.
In good times, you could sell your house and make enough money from the sale where you could start over, but now you are considering a short sale instead. First, you must find a buyer that is willing to pay for the house, and then you can approach your lender and tell them of your intentions to do a short sale in the property. The lender will then decide if they will consider a short sale on your property and will assess the value of the house and compare it with the marker value of similar properties. If the lender finds it acceptable then they can accept the house to be short sold for say $650,000 therefore, you would be saving $150,000 on your mortgage. You should consult with an experienced short sale attorney of Ariano & Reppucci to discuss whether a short sale makes sense in your particular situation.