What is a Short Sale?
A Short Sale is a discount on the outstanding loan balance by the lender or lenders to allow the property to sell. The mortgage balance on the property exceeds what comparable properties are selling for.
Why would my Lender agree to a Short Sale?
No lender wants to foreclose on anyone. It’s a lot of work and nobody winds. A short sale often has a better return on investment to the lender than a foreclosure. The average savings a lender sees from a short sale compared to a foreclosure is $50,000. Not only does the lender receive this savings, they are also paid on the loan much earlier than in a foreclosure process. Lenders created the short sale process as a foreclosure alternative for those reasons. The incentives to perform a short sale on your property are in place to motivate you to participate.
When should I consider a Short Sale?
Evaluate your current budget situation to determine if you can afford your monthly mortgage payment. Contact your bank to determine if there are options for you to modify your loan or work out a forbearance plan. If you realize that you can no longer afford your home, be proactive!
Don’t wait until it’s too late for a short sale option. Contact me today! (248) 254-3133
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About The Author
Deborah Johnson is an Associate Broker at RE/MAX New Trend, a Farmington Hills Real Estate Brokerage business. Deborah utilizes her 12 years of real estate experience in order to help clients with investment opportunities. She contributes to a daily Web Blog which focuses on the Oakland County Real Estate Market, as well as other topics important to Farmington Hills, MI and Southeast Oakland County. For more information on Deborah, please visit her real estate website at www.visitdeborah.com
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