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Avonnancy123, Home Buyer in New Lenox, IL

if i sell my house for what i owe on the mortgage, is it still considered a short sale?

Asked by Avonnancy123, New Lenox, IL Thu Feb 2, 2012

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Gina Chirico’s answer
A short sale is a transaction for the sale and purchase of real property where the purchase price is less than the amount required to pay off the liens on the real property, such as mortgages, judgments, taxes, homeowner or condominium association fees (if applicable), assessments, as well as closing costs including but not limited to real estate broker commissions, realty transfer fee, and attorney's fees. So if you sell your house for what you owe and can pay all the other fees associated with the sale of the home, its not a short sale. If you can't then it will be a short sale.
1 vote Thank Flag Link Thu Feb 2, 2012
Do you need bank approval?
0 votes Thank Flag Link Fri Apr 13, 2012
Avon,

Answer technically is no. Short sales are when you sell the house for LESS than you owe, and the bank is willing to accept the "shortage" so to speak. Just because YOU make no profit does not make it a short sale.

Remember, whether or not you list and/or sell using a Realtor and therefore also have to pay commission, there will be additional costs involved. They can include attorney fees, document recording fees, any repairs you may have to make after inspections, etc.

If you dont have sufficient funds available to cover those costs after paying off the mortgage, I would speak to someone whether it's your attorney or a financial person or even an agent familiar with short sales to get an approximation of what the actual costs to you may be.
0 votes Thank Flag Link Fri Feb 3, 2012
Will you need to bring money to Closing?
If you it is a Short Sale.
0 votes Thank Flag Link Thu Feb 2, 2012
If you satisfy your mortgage you are not a short sale you are a completed satisfied sale and if this is were you are great job!
0 votes Thank Flag Link Thu Feb 2, 2012
If at the end of the transaction, you owe the Bank nothing and satisfy all other parties(Agents/Brokers/Closing Costs) it is not a Short Sale. Best of Luck, Allan
0 votes Thank Flag Link Thu Feb 2, 2012
Avon,

I'd ask . . . do you have the liquid funds to pay the realtors fees and closing costs? Have u missed any payments?

Sounds like you would like to avoid the short sale and the detriment to your credit, but are still "other fees" that will be owed to which you need to consider.

Francesca Patrizio, Broker Sales Associate, ePro, SRES
Francesca@PatrizioRE.com
732.606.2931 (Direct/Cell)
Web Reference: http://www.PatrizioRE.com
0 votes Thank Flag Link Thu Feb 2, 2012
It is not a short sale unless you are asking the bank to take less then you owe on the mortgage.
0 votes Thank Flag Link Thu Feb 2, 2012
No it is not considered a short sale.
Web Reference: http://www.golftobeach.com
0 votes Thank Flag Link Thu Feb 2, 2012
Avonnnacy,

It will not be a short sale unless you plan to ask the mortgage company to accept less than you owe them. If you come up with the total payoff amount at closing of escrow, its not a short sale. Many people have actually sold their homes for less than they owe, but use their own funds to make up the difference to pay off the mortgage. That situation would not be considered a short sale.

Although I'm not in your area, I am an SFR Short Sale/Foreclosure specialist so feel free to contact me directly with any questions.

Good Luck

Barbara Smith
SFR Short Sale Foreclosure Specialist
Weichert Realtors
NJ & PA Licensed
Cell/Text: 609-980-7593
email: BarbSmith321@gmail.com
0 votes Thank Flag Link Thu Feb 2, 2012
Consider that if you sell for what you owe, there are other cost involved in the sale such as closing, title escrow, commission etc. This can result in a short closing and you will need to bring money to the table or "short" the lender their pay off.

Talk with a trusted adviser, Broker, CPA, Attorney to assist you.

All the best to you.
Web Reference: http://terrivellios.com
0 votes Thank Flag Link Thu Feb 2, 2012
A short sale occurs when one sells for less than owed on his/her mortgage; therefore if the sale of your property results with enough money, to fully pay at closing what you currently owe, no it will not be considered a short sale.
0 votes Thank Flag Link Thu Feb 2, 2012
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