About Short Sales

WHAT IS A SHORT SALE?

A short sale is the agreement of your mortgage lender to accept payoff of your mortgage loan for less than the balance due. A short sale is a way for homeowners who are underwater on their homes, under financial duress, to eliminate further financial exhaustion and move on to better financial times.  Here are a few facts about short sales (pre-foreclosure sales, in the lingo of your lender):

> Approximately 1 in 6 mortgages in the United States are upside down in a negative equity position, which means that, in order to sell their homes in the future, they will have to bring a check to the closing table or negotiate a short sale with their lender.

>A short sale is a ZERO NET seller transaction. Yes, the seller walks away from the sale without any proceeds, but is out from under a crushing debt, and onto the first steps to financial recovery.

>A short sale is not as severe an impact on your credit as a foreclosure.  If you are facing foreclosure, you have nothing to lose by attempting to  negotiate a short sale.  The lender doesn’t really wnat your home and the economic  climate makes a short sale a more palatable event for the homeowner and the lender.

>It is not necessary to be behind in  paymetns to effect a short sale, but if you are behind in your payments, a Notice of Default may be imminent with foreclosure on its heels.  A valid hardship must be present and some qualifying exists to negotiate a short sale.  Work with a competent REALTOR on this one to get it right.

FIRST FINANCIAL ADVANTAGE, a division of TOB, Inc and Executive Choice Realty, is a certified Distressed Property Counseling service.  We are here to guide homeowners through the rough financial times and help you see the options available to you.  Call Bob or Konnie at 530-913-1799   Consultation is FREE