Short Sale Basics
April 10th, 2009 categories: Buyer Resource, Foreclosures, Seller Resource, Short Sales
Are you behind on your mortgage payments?
Are you no longer able to make your monthly mortgage payment?
Do you want to eliminate mortgage debt?
Do you need to make a fresh start?
Do not know what to do or where to turn?
If you answered yes to any of the above questions, it may be time to talk to a Real Estate professional.
Have you heard of a “Short Sale”?
A short sale, at its most basic level, is when your lender agrees to accept an offer for the sale of your home that does not repay the lender the entire principal amount they are owed. In a market where prices have declined, short sales are quite common, and many lenders are willing to work with you in this situation.
Mathematically, a short sale might look like this: You purchased your home for $400,000 and put $50,000; while taking out a loan for $350,000. The market declined 25%, so now the home is worth $300,000 ($400,000 -25%). You need to move, so you list your home for sale with a Realtor. You receive an offer for $300,000 and accept the offer contingent upon your lenders approval. After receiving a Broker Price Opinion on the value of the home, your lender may agree to the sale, even though they are receiving less than they are owed. Once this occurs, then you have effectively sold your home for less than you owe.
Each lender has different requirements in short sale transaction details , however, this is the general idea of the concept. Some lenders, such as Wachovia, have streamlined the process to make things easier for sellers, make things easier for buyers, and decrease the loss that might occur if the home were to fall into foreclosure.
Short Sales and Foreclosures are extremely common here in Sonoma County. If you need to sell your home and are not sure exactly how much it is worth, WE CAN HELP! If you are looking to purchase a Sonoma County Short Sale or Sonoma County Foreclosures, WE CAN HELP! Do not hesitate to contact us for information regarding the Sonoma County Real Estate Market, and how to move forward with a short sale.
And remember…Experience Counts when it comes to short sales. Visit us at WineCountryMoves.com today to find out how we can help you through the short sale process. For years, we have been helping buyers and sellers negotiate the short sale maze that has left many confused, frustrated, and confused and frustrated.
