What is a short sale?
I hear this question almost daily, so let me explain:
Essentially, a short sale (or Short Pay), is when a seller sells a property for less than what is owed, the lender accepts a "Short Payoff" on the loan, under the right circumstances that is.
The basic elements are; A hardship, this could be loss of income, health, etc, in the end, the result is that there is an inability to pay the current payment; Proof of that financial situation, usually through a financial statement, pay stubs, bank account statements, and or tax returns; finally, the lenders approval of the sale at the lower value, also known as a letter of approval, which will allow the seller to close escrow on the deal.
If you have questions about this, please feel free to call me at (951) 805-0773.
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