Foreclosure in 11023>Question Details

Johnc, Home Buyer in 11023

what is a short sale?

Asked by Johnc, 11023 Fri Jul 29, 2011

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As the other answers have said, it is when a mortgage company agrees to take a payoff less than the actual payoff. For most people in today's market, they can't sell the house for what they owe on it because the market values are so depressed in today's market. If they can't sell for what they owe then the funds from the sale of the home aren't enough to pay off the mortgage and there will still be money owed.

In order for an owner to be eligible for most short sales I have encountered, they must be able to prove that the market has declined and that there is some sort of hardship that makes them unable to pay the difference. Some cases are illness, job layoffs, divorce, military moves, etc. It is up to each individual mortgage company as to what they are willing to accept or not. In addition, even if you have had a hardship, you generally cannot have a large amount of savings, 401k build up, etc. A mortgage company wouldn't be ok with taking such a large loss if you actually do have the means of making up the difference, but are choosing not to. I have to tell my short sale clients that they can't do a short sale because their mortgage payment is simply inconvenient; they can only do one if they truly have circumstances that warranty it.

If I can answer any more questions, please let me know. Thanks!

Melissa Stephens
The Stephens & Stephens Group
Better Homes and Gardens Real Estate Metro Brokers
404-843-2500 Office
678-776-1895 Cell
800-383-0430 Fax
http://www.StephensandStephens.net - Website

Comment on our blog: http://www.TheScoopinRealEstate.com
1 vote Thank Flag Link Fri Jul 29, 2011
A Short Sale is an alternative to foreclosure proceedings and undoubtedly the lesser of two evils. You are basically selling the property at a loss under an agreement with the lender. Typically there is some debt forgiveness involved and at the end of the sale you get to move on with your life without the impending doom of foreclosure or a bankruptcy blight on your credit that could follow you around for 7-10 years.
0 votes Thank Flag Link Sun Jul 31, 2011
A short sale occurs when an owner has proven hardship to the lender, and can sell for less than owed; the owner can accept whatever offer he/she wishes, but the lender decides to accept, reject, or counteroffer--short sales are by no means fast sales, and much patience is needed....
0 votes Thank Flag Link Sat Jul 30, 2011
You already know that a short sale is the sale of a home where the mortgage balance is higher than the sale price. There are many tricks and traps and it's best to discuss it with an expert. If you're not ready to do that, I have a great deal of information available online on short sales. Please see the link below.

Peter Andreasian, CDPE
RE/MAX Town & Country
10 Bond Street
Great Neck, NY 11021
516-410-7603
516-487-5432
0 votes Thank Flag Link Sat Jul 30, 2011
A short sale is when the bank agrees to accept as a payoff amount less than is actually owed on the property. This of course requires bank approval and can be very stressful process for both buyer and seller or can go very smoothly and quick. It depends how each bank sets up their own short sale process.

Contact for all your Real Estate Needs:

Lillian Tramantano, GRI
Associate Broker
Certified Home Marketing Specialist
516-678-6648
ltramantano@coachrealtors.com
0 votes Thank Flag Link Sat Jul 30, 2011
Sometimes in a short sale the seller could be looking at a deficiency judgement, tax implications, or a promissory note to pay back on the bank's loss.

Short sales can be short and sweet, or long and tedious. It's best to work with a realtor experienced with them in order to find the best ones to work with. It saves time and stress.
0 votes Thank Flag Link Fri Jul 29, 2011
A SHORT SALE occurs when a lender agrees to accept less than is owed on a mortgage.
0 votes Thank Flag Link Fri Jul 29, 2011
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