Header Image

Is A Short Sale For Me?

A short sale is a real estate transaction in which the bank or lender agrees to let the homeowners sell their home for less than their loan balance. In some cases, the sellers don't need to pay back the difference between what they owe and the proceeds of the sale.
 Recent changes in the industry have streamlined the short sale process, making this sort of transaction a popular alternative for both buyers and sellers. Additionally, banks are much more interested in facilitating short sales and avoiding foreclosures that result in placing the properties back on their books.
Who benefits from a short sale?

In many cases, short sales present a proverbial "win-win" situation. Here's how:
Sellers avoid foreclosure and protect their credit from the harder hit of foreclosure.
Buyers receive a good price on the home.
Lenders avoid a costly foreclosure. The potential loss from a foreclosure is typically higher than a loss from a short sale.
 
How it works
Say you owe $200,000 on your home and can no longer make the mortgage payments. One option is to refinance your home and secure a lower payment based on a longer-term or better interest rate. But if your property has lost value due to local market conditions (say it would sell for only $150,000), refinancing isn't feasible. If the bank agrees to a sale at $150,000, it's called a short sale.
 Although short sales have become more common in recent years, banks don't always grant them. In general, they approve short sales in these situations:

  • Seller has a hardship (such as divorce, bankruptcy, unemployment, job relocation).
  •  
  • Seller owes more on the mortgage than the home's current market value.
  •  
  • A mortgage is in or near default status.
  •  
  • Seller has no assets.
  •  
  • However, different banks and lenders have different requirements. So sellers should discuss the short sale option with their lender.
  •  
  • Short sales can present a great deal for buyers. But the process is a bit more complicated than a normal home purchase, and it will take patience.

GET IN TOUCH

Share


Local Expert Updates

Beth Toliver

Cell: 712.330.4793

Lonna Draayer

Cell: 712.320.5480

Schrunk Team

Cell: 712.541.9317

Janie Eick

Cell: 712.339.0574

Community Updates

Riddle Me That

Arnolds Park

Riddle Me That is a brand new escape room in Arnolds Park. Its an awesome place to bring the family for a thrill, or the perfect team building activity for the office. The goal is to find clues, solve the mystery, and escape the room before the time runs out. Perfect for a rainy summer day, or just a day you need a little adventure in your life!

Aaron Jones ABR | SRS, RE/MAX Hall of Fame & Lifetime Achievem (Real Estate Agent)

Aaron Jones

ABR | SRS, RE/MAX Hall of Fame & Lifetime Achievem

712.336.4967

aaron@bojihomes.com

Taco House

West Okoboji

One of a kind Authentic Mexican Cuisine right here in West Okoboji! A local favorite and rated five stars by visitors young and old. Be sure to put this as a favorite on your list of places to not miss when you are vacationing in the Lakes area. Close to Terrace Park so if you are feeling up for a small walk you may walk from Terrace Park to the Taco House.

Thee Garage Sale:

Milford

An exceptional thrift store located in Milford that supports the programs and services of the Cherish Center. Great selection of furniture, decor, kitchen items, children's clothes, toys and more! Located on 22nd Street in Milford. Just 2 blocks South of Perkins.

Subscribe To Our Newsletter

The newsletter is sent periodically and will update you on the latest real estate news and offers.