Short Sale Basics:
What is a Short Sale and What Happens Next

What is a Short Sale?

A short sale is an alternative to foreclosure that can be beneficial to you as a borrower by allowing you to avoid a more negative impact on your credit report. It is simply a real estate sale in which the current value or sales price is less than the amount owed in mortgages. Due to this fact, the lender (bank) has to approve the sale of the property. Banks will agree to this because with a short sale, both parties win. The banks would rather take your money than your property due to the hassles involved with foreclosure, and the party short selling benefits by lessening the negative impact on their credit.

What are the criteria for a short sale?

Property has to have a current market value of at least $200,000.

If you have refinanced and/or taken cash out, be aware that the bank may require a promissory note of a small percentage of the cash out amount at closing. Also keep in mind, if you have taken cash out of your home you may be more liable for a deficiency judgment if you foreclose. With a short sale, we will know exactly where you stand with the bank at the time of closing.

Homeowners do not have to qualify for a short sale as they do for a loan modification.

How much does a short sale cost?

Our service is FREE. We split commissions with the Realtor.

What happens next?

Simply call us at 888-444-4090 or submit an application today and we will contact you to explain your next steps. It's that easy!