A short sale can be a solution for homeowners who need to sell and who owe more on their homes than they are worth. In the past, it was rare for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes, banks and lenders have become more negotiable when it comes to these transactions. Here is a more official definition of a "Short Sale": - A homeowner is 'short' when the amount owed on his/her property is higher than current market value.
- A short sale occurs when a negotiation is entered into with the homeowner's mortgage company (or companies) to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is then 'sold short' of the total value of the mortgage.
For homeowners to qualify for a short sale, lenders often look for the following circumstances: - Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
- Monthly Income Shortfall – In other words: "You have more month than money." A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
- Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.
The Amy Jones Group and RE/Max Infinity assumes no responsibility nor guarantees the accuracy of this information and is not engaged in the practice of law and does not give legal advice. It is strongly recommended that you seek appropriate professional counsel regarding your rights as a homeowner.
The Amy Jones Group and RE/Max Infinity are not associated with the government, and our service is not approved by the government or your lender. Even if you use our service, your lender may not agree to change your loan.
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