A 'Short Sale' is a sales transaction of your home in which the seller's mortgage lender agrees to accept a payoff of less than the balance due on the loan.
Short sales appear on your credit report as "pre-foreclosure in redemption", not as "debt discharged due to foreclosure" which may have less impact on your credit score than a foreclosure or bankruptcy. This is largely up to the lender and can be addressed during the Short Sale proceedings.
Often in this economy a homeowner falls behind on his or her mortgage payments, usually due to a job loss, rising debt payments, or both. Facing a situation in which the home value has fallen and cannot be sold for the amount of the mortgage owed, the homeowner works out a deal with the lender to sell the home for whatever the market will bear. If the amount of the sale is less than the amount owed on the mortgage, the lender gets the proceeds and usually discharges the remaining debt. The homeowner will have to leave the house as soon as it is sold.
You do NOT have to be behind in your payments to qualify for a Short Sale.
There can be many complications involved in the initial proceedings such as:
We provide a Comparative Market Analysis that can support a short sale approval if your home is indeed worth less than you owe. This will also give a very good idea of how to price your home and get it sold quick once it's on the market. This is not the time to hold out for top-dollar for your home. This is the time to unload your home for fair market value and get the burden of a high mortgage off your back.
When you reach a sales agreement with a prospective purchaser, the lender will want a copy of the offer, along with a copy of your listing agreement. Often the lender will want to renegotiate commissions and to refuse to pay for certain items such as home protection plans or termite inspections. A Harvest Realty Real Estate Professional can work to see that no unforseen problems or last minute changes occur.
Remember, the lender is weighing the cost of accepting your short-sale offer against the high costs of foreclosure proceedings.
Call for a no-obligation appointment with a Harvest Realty agent that can help.