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What is a Short Sale and is it right for me?
Short Sale - (shôrt săl) noun - a process that allows a home owner to get a discount on their home mortgage allowing it to sell at todays deflated values without owing the difference to their bank.
A Short Sale is the sale of a home when the loan or loans on the home are more than the sales proceeds and the lender or lenders accept the sale. The loan or loans are fully satisfied by the sale. The lender or lenders will pay all the costs of selling your home, including commissions, repair costs, and title and escrow fees. If you are faced with the hardship of probably not being able pay your loan or loans on your home, the lender or lenders would rather settle the problem with you instead of having to foreclose. By completing a Short Sale the lender or lenders have made a decision that for them is much better than a foreclosure.
How much will I have to pay to sell my home by a Short Sale?
Nothing. The lender or lenders will pay all the costs including repairs, commissions, and title and escrow fees. The following clause will be in the contract.
" Sellers agreement to sell is subject to approval by existing lender or lenders of a Short Sale at no cost to the seller. Seller will not have to deposit funds in escrow to close."
Remember, lenders would rather have a small loss on a Short Sale than a big loss on a foreclosure.
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