Short Sale

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We are all feeling the economic pinch.  Making it harder and harder to make ends meet.  What happens when you have to decide whether to put food on the table or pay your mortgage?  Something has to give.

A short sale occurs when financial hardship prevents you from making your mortgage payments.  While there are options that you should explore; most of the time you end up in either a Short Sale or in a Deed In Lieu of Foreclosure.  There are differences.

In a Short Sale, you sell the property for less than you owe the bank. Thus the term short sale.  If you are able to sell the property for more than you owe the bank, then that's just a regular every day sale.  To the bank or lending institution, a Short Sale is part of a foreclosure.  The only difference is that you and the bank/lender come to an agreement on the (short) sale of the property and avoid going to court.

There are credit and potential tax implications and we recommend you discuss this with your accountant if you have one.

Each lender has its own process but for the vast majority they follow the same steps:

1. Apply for foreclosure or short sale so that the bank can evaluate your situation and present possible options.  An option might be Deed In Lieu of Foreclosure where the sale of the property is not required. You just turn in the keys and walk away.  Most investors/banks do not easily allow for DILs but it is worth exploring and comparing options with your accountant.

2. Provide a statement of hardship explaining your current situation .

3.  Listing the property for sale.

4. Accepting a buyer contract.

5. Seeking approval from the bank/lending institution. 

5. Closing on the sale of the property.

There are some costs associated with the short-sale process.  Some lenders charge a fee while most do not.

It is recommended that you continue to pay your mortgage as long as you're able to.

The application process and dealing with the lender is usually handled by either your Real Estate Broker or an attorney.

369 International Realty can handle the entire process for you.  While we are not attorneys, we are certified short-sale professionals and we can take the burden off your shoulders.  Call or write for a free consultation.

This depends a great deal on the bank/lender that holds your mortgage. Some lenders are able to proceed fast, meaning you can obtain a response from the bank within weeks while others can take months.  This was particularly true during the mid 2000s when short sales were very common. 

Schedule a free consultation with us today.

You can call/text/whatsapp me at 407-466-7262.

Or email me at Alejandro@369Realty.com

We can schedule a time that is good for you and discuss your options and help you with the process.