“Short Sales” What is a Short Sale? Who can explain what a Short Sale is? Is a Short Sale best for me?
A short sale in real estate occurs when the outstanding obligations (mortgages, including HELOCS) are greater than the properties value or potential sales price. The owner of the property lists the property for sale with a Realtor of their choice at the market price and the Realtor prepares a request (Short Sale Package) that is sent to the Lender(s) requesting a reduction in the mortgage(s) balance that will match the sales net. The Realtors commission is paid out of the sales proceeds as well as the unpaid property taxes, Title fees and most of the sales closing costs. In most cases the Seller(s) will not have to contribute any funds towards the closing.
Some things to consider when determining if a short sale is right for you:
1. Contact a Realtor that is experienced in the short sale process.
2. Review this option with your CPA and family Attorney. I always have my clients meet with a CPA and Attorney (with real estate experience) to review whether the short sale process is right for you.
3. The short sale approval process can take 2-5 months depending on the Lender.