Market Conditions in Hudson>Question Details

oberhofen, Home Buyer in Hudson, FL

What is a "short sale?" Thank you.

Asked by oberhofen, Hudson, FL Mon Apr 29, 2013

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This short article will explain the difference between short-sales and foreclosures;
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And this one will help you decide if a short-sale is convenient in your situation;
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Tony Vega
Antonelli Realty
0 votes Thank Flag Link Tue Apr 30, 2013
Basically, a "short sale" is planned when a homeowner has been affected by the economic downturn of the last few years and is unable to make the mortgage payments and unable to sell the property because the home has no equity. The homeowner owes more on the home than the home is worth and is at the mercy of the mortgage lender!

At this point, the lender must decide how to resolve the account usually by either foreclosing the property or allowing the homeowner to sell the home for less than what is currently owed. A foreclosure is a long and expensive process for the lender which still leaves the lender with a house they must sell. Another option (usually better for the homeowner) is for the lender to allow the homeowner to sell the home for less than what is currently owed on the property, thus the "short sale". When a short sale occurs, the balance of the mortgage not satisfied with the proceeds of the sale (known as the deficiency) is written off in most cases, unlike with a foreclosure.

Make no mistake, a short sale is a complicated process. Hire professionals who can guide you through it. Best of luck!
0 votes Thank Flag Link Mon Apr 29, 2013
A short sale occurs when a home will only sell for less than the amount owed on the mortgage.

The sellers are asking the bank to accept the lower amount, and not hold them responsible for the balance of their loan.

The sellers will list their home, accept an offer, and then wait for the bank to approve the sale. Everything is subject to bank approval.

This can take months, and there is no guarantee that it will ever close.
0 votes Thank Flag Link Mon Apr 29, 2013
a short sale is a situation where more is owed on the home than it is worth. Most of them have been the result of the real estate market tanking in 2006. In a short sale, the bank ultimately agrees to accept less in payment than the original value of the mortgage. The seller gets nothing, and the bank takes the hit for the loss.

It takes longer than a conventional sale because the buyer and seller reach an agreement and then that agreement has to go to the bank for their consideration. The contract is "subject to lender approval".

I hope this helps.

Myke Triebold, GRI, SFR ABR
0 votes Thank Flag Link Mon Apr 29, 2013
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