You are here, answers are around the corner.....

Chances are, you or someone you know in Colorado is facing the possibility of foreclosure.

Today, nearly 1 out of every 6 homeonwers in America is behind on mortgage payments. These are tough and frustrating times. Now more than ever, it's important to identify your options. Foreclosure can be avoided, your credit can be saved, and your financial future can be salvaged.

Thursday, March 4, 2010

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.

But to be technical, here's a more official definition:
  • A homeowner is 'short' when the amount owed on his/her property is higher than current market value.
  • A short sale occurs when a negotiation is entered into with the homeowner's mortgage company (or companies) to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is then 'sold short' of the total value of the mortgage.

For homeowners to qualify for a short sale, they must fall into all of the following circumstances:

  • Financial Hardship - There is a situation causing you to have trouble affording your mortgage.
  • Monthly Income Shortfall - In other words: "You have more month than money." A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
  • Insolvency - The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.

Posted by at 5:34 PM
Labels:

2 comments:

  1. I am really impressed with the content of your blog. It is easy to see that you are passionate about your writing. If I had your writing ability, I know I would be successful. I have bookmarked your site and look forward to more updates. what is a short sale?

    ReplyDelete

  2. Now you will probably not hear a real estate agent or broker tell you that you shouldn’t buy a short sale. The reason for that is because they are the ones that make money on the short sale not the seller or the buyer. Below we will list some reasons as to why you should not buy a short sale whether you are a first time home buyer or not.




    home buyer

    ReplyDelete

Subscribe to: Post Comments (Atom)