Short Sales

By
Services for Real Estate Pros with Laura Moore Godek, PC

Short Sales

 

A short sale happens when property is sold for less than the Sellers owe on the property.  For property owners who can no longer keep up on their mortgage payments it is an alternative to bankruptcy or foreclosure.  A short sale works well with delinquent homeowners who have little or no equity in their property who want to lessen the impact to  their credit by selling the property before it goes all the way through foreclosure.  Short sales create a win-win situations.  Sellers payoff their mortgage, end the foreclosure process, prevent further damage to their credit.We can find out if the mortgage company will agree to accept less than the amount they are owed.  Not all lenders will accept short sales or discounted payoffs.  Each case is researched independently.  There is no charge to the seller for this work unless the lender agrees to the short sale and the property is sold and  closes.

 

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Comments (2)

Jeffrey Smith
Author of 'Realtors Guide To Short Sale Success - Eustis, FL
Short Sale Education

Okay with the statement until the last line; "There is no charge to the seller UNLESS the lender agrees to the shortsale and the property is sold and closes."

What charge does the seller have if the bank does a shortsale?

Mar 23, 2010 11:59 PM
Laura Moore Godek
Laura Moore Godek, PC - McHenry, IL

.  In the vast majority of the short sale files that we have closed, the Seller has paid no costs at the time of closing.  In the last few months, some lenders have indicated they will not cover the cost of a survey and, if needed, a well and septic evaluation.   We have had some files recently where the Seller has agreed to pay these fees. 

A second mortgage company, especially if their loan was a home equity line of credit, may indicate that the Seller must enter into a note for the discrepancy on their loan to have the lien on the property released.   We've had this take place on one or two of our short sales in the nine years I've been here

 

 

Mar 25, 2010 03:37 AM