With the current state of the economy and the housing market short sales are becoming more and more popular, and for good reason. There are several homes in Medina County that are on the market listed as a short sale right now.
So what is a short sale? Simply put it's when your home sells for less then what your loan payoff is. This can only be done with approval from the bank! Many banks have different guidelines when it comes to allowing a borrower to short sale their property. Many homeowners have been led to believe that they must be 90 days past due on your house payments in order to qualify. THIS IS NOT ALWAYS TRUE. This is also why you need an agent familiar with short sales and the short sale process to represent you.
Why not just walk away? This in most cases is the worst thing you can do. Walking away will most likely put you in a long drawn out foreclosure process. The stress and headaches that go along with this process can be very difficult for many to deal with. With the average cost to a lender to foreclose on a home being around the $40,000 - $50,000 price range it makes sense for them to just accept a short sale.
Ok, neither option is great, that's obvious. However, often times when a short sale is accepted from a lender the lender will waive the difference in what you owe and what they are getting for the home. This means that once accepted and the deal closes you walk away without having to worry about a lawsuit being filed against you. This allows you to start to get your credit back on track.
How long does the process take? This is the million dollar question. In the past they have been known to take up to a year just to accept or reject an offer. This may be changing! The US Government is pushing for lenders to furnish an answer to all offers within 10 days! They are also paying the seller up to $1,500 as a moving bonus in order to short sale your property.
I want to short sale my home, what should I do? Contact a short sale agent that understands the short sale process to talk about your situation. If you live in Medina or surrounding areas and would like to discuss the possibility of a short sale please contact me.
Remember, a short sale is not the end of the world!
Why don't some agents like dealing with shorts sales? Many agents simply do not have the time to manage a short sale listing. Short sales require a full-time agent that is ready, willing and able to work with the homeowner as well as the bank 7 days a week. As a full time agent that has spent a great deal of time learning the short sale process I am ready to go to work for you.
Kyle Shorts - Russell Real Estate Services