What is a short sale?
A short sale situation occurs when a homeowner needs to sell their property because of a hardship, but the market value of the property is less than the amount owed on it. The homeowner is not permitted to realize any proceeds from such a sale, and the bank will be taking a loss, i.e. will be coming up short -- hence the term "short sale."

Contrary to what many people think when they hear the term, "short sales" are not "quick sales." They often can take months to complete and require a buyer who is not in a hurry to have an answer, but who can wait it out as the process goes through its cycle.

Who should consider a short sale?
If you have a genuine hardship and absolutely cannot continue to own your home, you should consider a short sale. On the other hand, if there is a possibility that you could hang on to it by moving into a less expensive home and renting your current home, by seeking a loan modification, or by getting temporary help from family or friends, one of those options is to be preferred.

Will a short sale affect my credit rating?
Absolutely! While it is possible that you might be able to qualify to buy a new home sooner than you would with a foreclosure, there will still be major credit consequences when you do a short sale. How much will depend on how many months late payments you accumulate while waiting out the process.

What is the benefit to me in doing a short sale?
While your credit rating will be affected, there is nothing worse to have on your credit history than a foreclosure. A foreclosure is worse than a bankruptcy or an account charge off. Many homeowners feel that a short sale is the "right way" to resolve their financial difficulties, rather than just walking away from the property and letting the bank foreclose on it. In addition, doing a short sale allows the homeowner avoid any worries about the sherrif visiting or being hassled by the lender to move out.

What constitutes a genuine hardship?
Factors such as death of a spouse, loss of a job, job transfer requiring a major move, illness affecting ability to work, divorce, a major reduction in income, and loans with an adjustable rate mortgage which are resetting to a much higher rate and payment are some of the reasons banks will consider as a hardship. Simply deciding that you no longer want to make payments on your home because it is not worth what you paid for it is not a reason to do a short sale and will result in your request being denied.

How do I start the short sale process?
Many agents are either not qualified and trained to do short sales, or are not interested in doing them because of the up-front work required with no assurance of a paycheck at the end of the process.

A Realtor who is well-qualified and well-versed in the short sale process will be able to help you determine the strength of your short sale request, work closely with you to collect all the  information and documentation necessary for a short sale package, and market your home in order to solicit offers to submit to the bank. Until you have an offer from a qualified buyer, the bank will not consider your request.

Pricing a short sale is not the same as pricing a standard sale, and to do it correctly requires knowledge and experience. Using a Realtor who specializes in short sales is the best way to market your home. She can analyze the current market data using the professional tools available to her to determine the best listing price for your home, and then advertise it on the MLS, her website, local media, and the many other sources available to her.  

If you are interested in pursuing a short sale, or if just need to talk to someone about your options, you can either call me at the number listed at the top of the page, or fill out the form below.

I will respond to your request within 24 hours.