Short Sale 101

The definition of a "short sale" is any sale by an owner that provides a pay-off to its mortgage company that is less than what the full obligation of principal, interest, and fees would be normally.

Who Qualifies?
Any seller who has zero or negative equity in their property;
Can not afford to make the payments on the loan(s) n their property;
Does not have other assets available to pay the difference between the net proceeds on the sale of their property and what is owed on the loan(s) on the property.

Steps in a Short Sale:

1. Owner enters into a Purchase and Sale Agreement with a buyer.
2. Open Escrow with a title company.
3. Seller contacts and negotiates with lender the terms of the short sale and provides a package which includes financial information to prove the inability to make payments.
4. Second lein holders may require some or all of the same information as the first lein holder.
5. Lenders approving short sales generally appear to require:
The sale to be 'as-is'
The seller not recieving any money or items of value from the sale
The sale being an "arms length" transaction and the buyer not being related to the seller.

For more info on how to sell a Short Sale or purchase one, contact Emily today at 850-1822.