Short Sales 101
What is a Short Sale?
A short sale can be an excellent solution for homeowners who need to sell, and who owe more on their homes than they are worth. In the past, it was rare for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in corporate policy and the Obama administration have also improved the chances of getting a short sale approved.
A homeowner is ‘short’ when the amount owed on his/her property is higher than current market value. For instance, you owe $300,000 and the homes current market value is only $200,000
A short sale occurs when a negotiation is entered into with the homeowner’s mortgage company (or companies) to ...