What is a Short Sale?
A Short Sale is a real estate transaction wherein the seller's lender agrees to accept less than the current mortgage loan balance. Hence, the lender is being "shorted" in the payoff.
While it sounds very simple from the above definition, the reality is far from simple. In fact, getting a short sale approved is a very complicated and sometimes a very lengthy process.
Read up on "Obama Programs". CLICK HERE
The success of a Short Sale will largely depend on Real Estate Broker you employ.
And while a lot of Real Estate Brokers, attorneys and 3rd party companies out there charge a hefty fee to negotiate a short sale, my team does not. --- OUR SERVICES ARE AT NO COST TO THE HOMEOWNER.
The video below briefly touches on a few of the requirements for an ideal short sale scenario.
Why would your lender accept a payment that is much less than your current loan balance?
In Washington State, the foreclosing lender loses the right
to go after the borrower for the deficiency or short fall. In most cases, it is the 1st position lienholder/bank who forecloses on a property.
Understand that banks are not in the business of foreclosing and holding onto properties. When a bank forecloses on a property, it has to shoulder the maintenance costs associated with homeownership. A foreclosed property is then referred to as a "non-performing asset" (which is a euphemism for liability).
Naturally, banks are NOT inclined to holding onto a property long term. It is their standard operating procedure to get rid of foreclosed properties quickly in order to minimize their expenses. They then hire local real estate brokers, such as our team, to market and sell their non-performing assets and unload them from their books.
Find out in less than 60 seconds if you qualify for a Short Sale. CLICK HERE.
Statistics show that banks spend an average of $60,000.00 on each foreclosed property towards property maintenance and "asset disposal" process. Not to mention the risk of vandalism. This is a huge loss for the banks!
This premise is the very foundation of a short sale negotiation. But there are other factors and strategies that we utilize to negotiate a "win-win outcome" for both the homeowner and the bank.
In a short sale, banks would want the borrower to occupy and maintain the property until the short sale is finalized. This is where banks save money. This is why banks are more amicable to accept a short payoff than foreclosing on a property.
A successful short sale is one wherein the homeowner does NOT have to pay back the deficiency or short fall. This is a very complicated process and very hard to acomplish. You need an expert to help you. We offer our help at NO COST to struggling homeowners.