Since 2009, I have developed a rock solid track record for helping homeowners avoid foreclosure. From condos, townhomes, and single-family homes, many homeowners others were able to sell their home as a short sale with acceptable terms from the bank.
A short sale is where your bank gives you written permission to sell your home for less than full balance that is owed. There are multiple advantages to a short sale, including:
It depends. We have helped many homeowners who never missed a payment, but due to their financial hardship, the bank approved them for a short sale. Some mortgage companies do require you to be behind on your mortgage before they will consider you a candidate for a short sale.
This depends on two things: how many loans your have against your property and what bank(s) is involved. For example, some homeowners have two mortgages, a 'first' and a 'second'. In this case, both banks would have to approve you for a short sale, the first lender would grant approval first, then the second. The short sale approval process has become more streamlined over the past few years, so approval is usually granted within 30-45 days. After you have been approved by your lender, then the buyer side processing will begin. So, from start to finish, a short sale usually takes 90 days from contract acceptance to closing.
When you receive your short sale approval letter, it will outline the terms/conditions of your approval. When you are selling your home for less that the total balance due, your approval may include:
Here is an example of a Wells Fargo Short Sale Approval Letter that we recently received for one of our clients.
When you list your home as a short sale, this information is disclosed to the buyer and your purchase offer will be subject to short sale approval. As the homeowner, you will have the opportunity to review the short sale approval with an attorney. If you do not agree to the terms of the short sale, you can elect to cancel the sale, and purchase contract will be terminated, and your listing agreement will be canceled without penalty or termination fee.
The first step would be to find out the value of your home to determine if the market value is high enough for you to payoff your mortgage balance without selling short.
Where Can I Find Additional Information?
Since short sales are a different type of real estate transaction, I've dedicated an entire website to this specific topic. Please click here for free reports and additional information to see if a short sale might be the right choice for you. To contact me directly, please call 703-623-8759.