In today’s ever changing real estate market, we hear the word “short sale” used many times.  In fact, the word is used by both real estate professionals and home owners.  Often times the definition of what a short sale is, is not clear.  It is critical that all parties understand what a short sale in real estate is.

A short sale is where a property is being sold for less than the total amount that is owed to all lien holders on the property. A short sale is also called a pre- foreclosure sale.  
                                                                 

Requirements for a Short Sale

 Being Behind on your mortgage is no longer always the case to be approved for a short sale.  Most lenders are doing whatever they can to help homeowners facing possible foreclosure.  
 
• If you can prove to your lender you have a current hardship, have current monthly cash shortage, pending cash shortage within 90 days, and pending insolvency within 180 days, your lender may consider the short sale request. 
 
• Seller is behind in payments and owes more on the mortgage than the home is worth. 

• The seller has a long-term hardship that prevents them from making payments-such as the death of a co-borrower, unemployment, reduced income, divorce, medical emergency or bankruptcy.

• The lender is willing to consider a short sale.
 
If you are finding yourself in a distress situation and may need to consider a short sale, please contact me.

I am Short Sale & Foreclosure  Certified.