REAL ESTATE NICHES

What is a Short Sale?

The definition of a Short Sale:


The amount owed on a property is greater than the actual value and the lender agrees to forgive the difference to avoid foreclosure. The reason homeowners are in this situation is:

1. Unexpected hardship–Job loss, change in income, increased debt, family emergencies, etc.

2.  Creative mortgage financing — ARM and/or payment adjustment, deferred interest program (option ARM), 100% financing, purchase money, subprime mortgage, 40/50 year mortgages, etc.

3.  Market conditions –Values decreasing, no equity, speculators, flippers

Foreclosure is not a good option since it will adversely affect a homeowner’s credit record for up to 7 years.  Typically, the loan will show up as “satisfied” on your credit report; however there can be a notation that says “settled for less than originally owed.“  This is much more favorable than having a foreclosure on your credit report.

We have a loss mitigation company (see: The Short Sale Doctors) who will list and market your property, negotiate a short sale with your lender, find a buyer for your home, and ultimately sell your home and allow you to move on with your life.

Our main goal is to help homeowners walk away free and clear and put this difficult time in the past.

February 22nd, 2009 Posted by RE Niches at 07:17pm | Begin with the End in Mind, Borrowing, Building a Business, Foreclosure, Internet Marketing, Leveraging your time, Mortgage Modification, Short Sales, Stewardship--Our Namesake, Uncategorized | no comments

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