Short Sales Explained

A short sale can be an excellent solution for homeowners who need to sell, and who owe more on their homes than they are worth. In the past, it was rare for a bank or lender to accept a short sale. Today, however, due to overwhelming market changes, banks and lenders have become much more negotiable when it comes to these transactions. Recent changes in corporate policy and the Obama administration have also improved the chances of getting a short sale approved.

But to be technical, here's a more official definition:

• A homeowner is 'short' when the amount owed on his/her property is higher than current market value.
• A short sale occurs when a negotiation is entered into with the homeowner's mortgage company (or companies) to accept less than the full balance of the loan at closing. A buyer closes on the property, and the property is then 'sold short' of the total value of the mortgage.

For most mortages in order for homeowners to qualify for a short sale, they must fall into any or all of the following circumstances:

• Financial Hardship – There is a situation causing you to have trouble affording your mortgage.
• Monthly Income Shortfall – In other words: "You have more month than money." A lender will want to see that you cannot afford, or soon will not be able to afford your mortgage.
• Insolvency – The lender will want to see that you do not have significant liquid assets that would allow you to pay down your mortgage.

However, there are certain banks that may be willing to accept a short sale even if you do not meet the above requirements! Call Bill Lee today to find out if your mortgage qualifies! 

Short Sales are a complicated process that take the expertise of experienced professionals. I hold the CDPE® Designation and am ready to identify all possible options and, when possible, assist in the quick execution of a short sale transaction.

Please call me today for a free confidential evaluation of your individual situation, property value, and possible options at 800.401.4878 ext9178 or email me at bill.lee@coldwellbanker.com. 

What is the Difference Between a Short Sale and a Foreclosure on My Record?

There is much discussion in the media about whether a short sale or a foreclosure is a better choice. We have a special report that will outline both options and the potential impact on your future. Compared to the credit rating of borrowers who have foreclosure on their reports, those that have chosen short sales consistently experience a lesser impact on their credit scores. One of the biggest benefits of a short sale, however, is the ability to obtain a mortgage more quickly after the transaction is completed. The waiting period after a negative event is significantly shorter after a short sale. For our full report on short sale vs. foreclosure,  Click here to Order

Watch a Video To Learn More About Short Sales. 

Understanding your options now could mean all the difference in the world. Here from one of Bill's clients about their recent experience:

Dear Bill and Pauli,

Robyn and I want to thank you for all you did for us with the handling of our short sale. Before we signed up with your brokerage, we had many questions, confusion and fears. We knew the stakes were high and that the potential for damage to our finances was huge. There are not a lot of reliable resources for people in our position to turn to. We talked to several  very questionable services and organizations who had long lists of complaints against them on the Internet, and we talked unsuccessfully to our banks.  Our first meeting with you changed all of that. The two of you quickly cleared up much of our confusion and set us on a path to the solution.

Bill, I know you said you do this out of a desire to use your skills and knowledge to make a difference for people who find themselves in negative equity situations. Pauli, I know you are similarly, motivated out of care and concern for us. Robyn and I want you both to know that we can't thank you enough for choosing to apply your expertise in a way that helps people in our situation. You have made a real difference in our lives. You have shown us a nearly painless path through what could have been a disastrous situation. You handled the short sale and all of its complex details for us. Your combined skill and expertise successfully guided us down the path to resolution. We simply can't thank you enough for that, and for applying your skills and time in this way.

If there is anything that we can do for you, such as testimonials, references, social networking posts, taking calls from prospective clients or anything else, please allow us the privilege of doing do so. We will be only too happy to tell others the difference you made for us. 

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Dave Coates