What is a Short Sale?

A short sale is an arrangement between the current owner of the home and the bank that lent them the money to buy it.

In a nutshell, a short sale is when a bank accepts less money than is owed to them and considers this amount as "Paid in Full"

The deficiency is the difference between the amount owed on the home and what the bank collects on the short sale. Be aware that the I.R.S. considers debt forgiveness as income and the home owner who sells the house will likely receive a 1099 from the bank as declarable income.

Why do banks accept Short Sales?

The mortgage must be in arrears or foreclosure
The property may be in poor condition
The homeowner has hardships and cannot afford the payments
New homes in the area are being chosen over existing homes
The area or neighborhood has depreciated in value
By accepting a Short Sale, the bank can avoid a lengthy and costly foreclosure.

The benefits to the Seller

The home gets sold and the mortgage is FULLY paid off. The bank accepts a discounted payoff
There is no out-of-pocket cost to the seller as the bank pays virtually all the sales costs including the Real Estate agent's commissions.
The seller's credit score is protected from FORECLOSURE and the seller can move forward without having to worry about their house or their mortgage

The right Realtor is ESSENTIAL!

The paperwork needed to complete a Short Sale successfully can be extremely complicated and demands knowledge and diligents on the part of the Real estate agent. 

Knowing exactly what documentation the bank requires is paramount (and the list is long).

We can guide you though the process and do all the paperwork necessary to make a difficult situation a little less stressful.  

Please give us a call if we can be of Help.

623-512-0313  /  623-413-3277